How Would You Explain to a Friend Why Market Value

question 10

Essay

How would you explain to a friend why market value of a firm is more important to an investor than book value of the firm?

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Definitions:

Biological Parents

The individuals whose genetic material an offspring inherits; encompasses both the biological mother and father.

Terman

Lewis Terman, an American psychologist best known for his work in intelligence testing and the study of giftedness.

Gifted Kids

Children who exhibit a high level of capability in intellectual, creative, artistic, or leadership areas in comparison to their peers.

Several Decades

A period of many years, often used to describe a long time frame in history or a person’s life.