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Well put Allan.
I like your bit about Market Price v's Market
Value.
It reminds me when the Market takes a big hit, like
Sept 11, and all the lemmings rush out and sell up.
The traders rush in and make a killing and down the
track the lemmings wake up and realise Market Value.
Now Graeme Hart - Burns Philp - he knows what
Market Value is !
JHTW
----- Original Message -----
Sent: Friday, June 20, 2003 11:54
AM
Subject: [sharechat] Re: Book
Value...actually
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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