Tuesday, January 18, 2011

Valuation

Shares are valued according to various principles in differentmarkets, but a basic premise is that a share is worth the price at which a transaction would be likely to occur were the shares to be sold. 


The liquidity of markets is a major consideration as to whether a share is able to be sold at any given time. An actual sale transaction of shares between buyer and seller is usually considered to provide the best prima-facie market indicator as to the 'true value' of shares at that particular time.

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