Forum Archive Index - June 2003

[nickk@quicksilver.net.nz]

Great.......the 4th or 9th definition/example/description of book value..are 
you happy you asked the question now????? 

Dick O'Connor writes: 

> Book value is an American term equivalent to what used to be referred to 
> here as net tangible assets, and the more common term these days is equity 
> or sharehlders' equity. 
> 
> It is the sum total of money contributed to a company by 
> shareholders....the initial money put in to start a company, and any 
> subsequent money raised through issuing new shares and also retained 
> profits (which also, of course, is shareholder money). 
> 
> The value of book value in the past was that a steel mill, say, with the 
> highest book value had had the most equity put into it and thus owned the 
> biggest factory so that it had the scope to make the biggest profits when 
> things were going right. Today, the smokestack indistries of less 
> important and earning power is often more important than hard assets. 
> 
> Apart from equity, a company's total funds will likely also include 
> borrowings. 
> 
> _________________________________________________________________
> Find your perfect match @  http://personals.xtramsn.co.nz   with XtraMSN 
> Personals! 
> 
> 
> -------------------------------------------------------------------------- 
> --
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/ 
> 
 

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/