Bharti AXA INSURANCE GLOSSARY Market Value The market value of an asset is the price it would fetch if it were sold in an open market. For publicly listed companies, market value is the same as market capitalization – the current share price multiplied by its outstanding shares. For exchange-traded securities, market value is readily available and can be determined with some effort for over-the-counter securities like fixed income securities or shares of an unlisted company. It is much more challenging to ascertain the market value of illiquid assets like real estate and requires a specialized appraiser or valuation expert to calculate the same. The market value of an asset can fluctuate a lot over time. It is substantially effected by business cycle as well. Market values fall during bear markets and may rise dramatically during a bull market in a economic expansion. The market value of a company depends on many other factors as well including the sector to which the company belongs, the profitability of its operations, the amount of debt the company has and the broad market environment. The market value of a company can differ greatly from its book value. If the market value is lower that the book value, the stock is considered to be selling a discount to book value per share. Two companies that have the same book value can trade at very different market value based on the outlook of the sectors they operate in. Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.