Ratios: Book Value per Share of Common Stock definitions Flashcards
Ratios: Book Value per Share of Common Stock definitions
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Book Value Historical value of a company's equity as recorded on the balance sheet, excluding current market prices. Common Stock Equity ownership representing residual claims on assets and earnings after preferred stockholders are paid. Preferred Stock Class of stock with priority over common stock in dividends and liquidation proceeds. Retained Earnings Accumulated profits not distributed as dividends, forming part of shareholders' equity. Equity Ownership interest in a company, representing assets minus liabilities. Market Price Current trading value of a share on the stock market, distinct from book value. Balance Sheet Financial statement showing a company's assets, liabilities, and equity at a specific point in time. Dividends Distributions of a company's earnings to shareholders, with preferred holders paid before common holders. Liquidation Process of dissolving a company and distributing its assets to claimants, with priority given to preferred stockholders. Outstanding Shares Total number of a company's shares of common stock currently held by investors. Common Equity Portion of total equity attributable to common stockholders after preferred equity is subtracted. Preferred Equity Portion of total equity allocated to preferred stockholders, deducted before calculating common equity. Undervalued Company Business whose market price per share is below its book value per share, potentially signaling investment opportunity. Historical Value Original recorded value of assets or equity, not adjusted for current market conditions. Investment Opportunity Potential for financial gain identified when a company's market price is below its book value per share.
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