The stock market value refers to the price at which a stock is traded in the market. The market value of a stock is formed through the competition between buyers and sellers in the stock market, and it is the transaction price recognized by both buyers and sellers.
Introduction of stock market value
The market value of a stock is the total value of the stock calculated at the market price. Market capitalization is a measure of the size of a company’s assets, which is equal to the company’s current stock price multiplied by the number of common shares in the company. Market capitalization can usually be used as an assessment of the cost of acquiring a company, and the increase in market capitalization is often used as a key indicator to measure the company’s operating conditions. Market capitalization can also be affected by non-operating factors, such as acquisitions and buybacks.
Factors that determine and affect the market value of a stock
There are many factors that determine and affect the market value of a stock, mainly including the face value, net value, true value and market supply and demand of the stock. Generally speaking, the market value of a stock is based on the reference starting point of the face value, based on the net value and the true value of the stock, and is formed in the fluctuation of the market supply and demand relationship. Among them, the stock value, the true value and the stock market value change in the same direction, and the market value of the stock whose net value and true value increase will inevitably increase; and the market supply and demand relationship mainly refers to the supply and demand of funds and the supply and demand of the stock itself.
Stock par value: The par value of a stock, also known as “stock par value” and “par value”, is the par value indicated on the par value of the stock issued by the joint-stock company. The amount of capital contained in a sheet of stock. The face value of shares in circulation in my country’s Shanghai and Shenzhen stock exchanges is one yuan per share. (The only exception is Zijin Mining, whose shares have a face value of 0.1 yuan).
Net worth: The net worth of the stock is also known as the “book value of the stock”. The net value of the company’s accounting book that can be allocated to each common stock is the value of the actual assets contained in the stock. It is equal to the company’s net worth minus the total denomination of the company’s preferred stock outstanding divided by the number of common shares outstanding.
Stock True Value: Stock True Value is also known as “stock intrinsic value” or “stock intrinsic price”. The present value of a stock based on its future profitability. Stock is fictitious capital and has no value in itself. Only because the owner of the stock can regularly obtain dividends and transfer it to others at a certain price, it has the real value of the stock that determines the stock price. The present value of a stock mainly depends on two factors, the future earnings of the stock and the current market interest rate. Under the condition that factors such as market supply and demand remain unchanged, the true value of stocks is proportional to future earnings and inversely proportional to market interest rates.
Market supply and demand: In the long run, the price of a stock is determined by its intrinsic value, but in the medium and short term price analysis, the stock price is determined by supply and demand. The supply and demand relationship in the mature stock market is guided by the return on capital, that is, the level of return on capital has a decisive impact on the stock price.
