Tobin's Q Is the Ratio of Stock Market Value of a Stock

question 85

True/False

Tobin's q is the ratio of stock market value of a stock to the value of its capital.

---

Definitions:

Modern Banking

The contemporary financial system involving banks that offer a wide range of services, including deposits, loans, investment services, and electronic banking, characterized by regulatory frameworks and technological advancements.

Goldsmiths' Receipts

Historical documents representing deposit certificates issued by goldsmiths to denote ownership of gold or silver deposited with them.

Gold Coins

A type of currency made almost exclusively from gold, historically used as legal tender in various transactions.

Financial Transactions

Operations involving the transfer of funds or ownership of financial assets between parties, such as payments, investments, and loans.