Why Is It in General Difficult to Determine the Market

question 92

Multiple Choice

Why is it in general difficult to determine the market price of a private corporation's shares at any point in time?

• A)It is difficult to obtain enough information to accurately value such a company.
• B)The price of its shares is fixed by the owners.
• C)It has a limited number of owners.
• D)There is no organized market for its shares.
• E)Buyers do not wish to reveal their bid price.

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Definitions:

Joint Stock Company

A company whose stock is owned jointly by the shareholders, who have the rights to transfer their shares and are liable only to the extent of their investment.

Shares Of Stock

Represents units of ownership interest in a corporation or financial asset, providing a distribution of profits in the form of dividends.

Partnership Certificates

Documents issued by a partnership that certify ownership of a share in the partnership's profits, losses, and assets.

Incorporated Cooperative

A business entity recognized by law, composed of individuals who collaborate towards mutual economic, social, and cultural interests.