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    Difference between book value and market value per share of common stock

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    What is the difference between book value per share of common stock and market value per share? Why does this disparity occur?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:16 pm ad1c9bdddf

    Solution Preview

    First of all, book value per share represents the accounting value of a share of common stock but not necessarily market value. We can determine this value by dividing the company's net worth by the number of shares that are circulating (or outstanding).

    On the ...

    Solution Summary

    In two paragraphs, the response clearly explains the difference between book and market value. and also explains how to arrive at the two different amounts.