Book Value Per Share Refers to the

question 54

Multiple Choice

Book value per share refers to the

• A)net assets represented by one share of a company's stock.
• B)highest price that investors will pay for a share of stock.
• C)issue price of the stock,less any market decline since issuance.
• D)par or stated value of a share of stock.

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Definitions:

First Day Returns

The percentage change in the price of a stock from its initial public offering price to its closing price on the first day of trading on the public market.

Unseasoned Rights Offering

A capital-raising activity in which companies offer new shares to existing shareholders without a prior track record of such market actions.

Public Offering

The process of selling new issues of securities to the public, typically through the issuance of stocks or bonds.

Securities

Tradable assets indicating an equity stake in a company available on the public market, a lending relationship with either a governmental agency or a corporation (bond), or the rights to own shares as depicted by an option.