Effect of Stock Price on a net worth?


3 Answer(s)


The stock price is determined by the stock market.
A companys net worth = current assets - current liabilities
There is no role for a stock price in the above equation since all those numbers are from the balance sheet
The difference between the networth and the stock price is called the "premium".

i dont think stock price will affect net worth of a company.as formula goes net worth = total assets -total liabilities.

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