Effect of Stock Price on a net worth?



1
A company's worth - its total value,is represented by comoany's stock price, so why wont it affect its net worth.

3 Answer(s)


0

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".

0

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

0

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