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Question

The price at which the shares are sold or purchased in the stock market is called _____.


A
face value (FV)
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B
market value (MV)
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C
capital
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D
equity
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Solution

The correct option is B market value (MV)

The price at which the shares are sold or purchased in the stock market is called the Market Value (MV) of the share. Market Value changes frequently depending upon the company's performance. If the company's performance is better than expected, then the Market Value of its shares increases and if the company is not doing well, Market Value decreases.


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