Forum Archive Index - June 2003

["Allan Potts" <ajp7079@excite.com>]

Actually, yes actually, what all this thread illustrates is that when someone 
uses the term "value"   one must also precisely define how that value is 
calculated.

There is Market Value
         Investment Value
         Liquidation Value
         Book Value
         Quick Sale Value
         Tax Value
and  probably a few I've missed.  The important thing is that the 
writer/speaker define whatever value he/she is writing/talking about so the 
rest of the world can understand what goes into that "value".

Now at the risk of igniting yet another thread on this subject, I submit that 
what we in the sharemarkets actually deal with on a day to day basis is market 
price and not market value.   

"Market Value" defined as the most probable price in terms of money which a 
property should bring in a competitive and open market under all conditions 
requisite to a fair sale, the buyer and seller, each acting prudently, 
knowledgeably and assuming THE PRICE IS NOT AFFECTED BY UNDUE STIMULUS.

"Market Price" is the last trade.

Allan


 --- On Thu 06/19,   nickk@quicksilver.net.nz  wrote:
From:  [mailto: nickk@quicksilver.net.nz]
To: sharechat@sharechat.co.nz
Date: Fri, 20 Jun 2003 10:38:46 +1200
Subject: [sharechat] Re: Book Value...actually

Great.......the 4th or 9th definition/example/description of book value..are 
<br>you happy you asked the question now????? <br><br>Dick O'Connor writes: 
<br><br> Book value is an American term equivalent to what used to be referred 
to <br> here as net tangible assets, and the more common term these days is 
equity <br> or sharehlders' equity. <br> <br> It is the sum total of money 
contributed to a company by <br> shareholders....the initial money put in to 
start a company, and any <br> subsequent money raised through issuing new 
shares and also retained <br> profits (which also, of course, is shareholder 
money). <br> <br> The value of book value in the past was that a steel mill, 
say, with the <br> highest book value had had the most equity put into it and 
thus owned the <br> biggest factory so that it had the scope to make the 
biggest profits when <br> things were going right. Today, the smokestack 
indistries of less <br> important and earning power is often more important th
 an hard assets. <br> <br> Apart from equity, a company's total funds will 
likely also include <br> borrowings. <br> <br> 
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