What is the relationship between stock price and net value of stock?

Hi Binny,

Now online: Leave a question or comment and our agents will try to attend to you shortly =)You are currently being served by
AnjaliYou are currently being served by
Hi, I am Anjali. Please let me know how I can help you.
You (click to change)
I am in the middle of the quiz. The question was " If the stock price of a company reduces, which of the following items in the balance sheet is affected.
My answer was current assests.
I feel taht since current asset of the company consisst of the cash, stock etc. If the stock price goes down the net value of stock also goes down & hence the current assets value is affected. Please clarify
could you kindly post your doubt on the message board
I will ask the faculty to answer
Last message received at 5:04pm
We're online
Please reply as to why my answer was wrong.

1 Answer(s)


Vilas, The stock in your company's current asset is not the company's own stock. It is the stock of the other companies that your company has invested in.

When we refer to your company's stock, we are referring to the shareholders equity or net worth.

Your Answer

Click on this code-snippet-icon icon to add code snippet.

Upload Files (Maximum image file size - 1.5 MB, other file size - 10 MB, total size - not more than 50 MB)