why does the stock price not affect the assets of a company?



0
Hi Binny,

The stocks owned by a company signify its current assets. But these stocks can be readily converted into cash depending on the stock price, so why does the stock price not affect the assets of a company?

1 Answer(s)


0

Shobit, Every time the balance sheet is prepared for auditing the value of the companys stock holdings will be "marked to market" to indicate the most current value of those holdings. So stock price of the companys stock holdings does affect the value of the assets.

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)

Email
Password