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Berkshire Hathaway

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16y ago

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How can the price of a company's share be less than the face value of the share?

How can the price of a company's share be less than the face value of the share?" How can the price of a company's share be less than the face value of the share?"


Does a reduction in share price decrease company profit?

No, a reduction in a company's share price has no effect on the company's profits.


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Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase.


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A negative price-to-book ratio indicates that the company's stock is trading below its book value per share. This could suggest that the market has a negative perception of the company's financial health or future prospects.


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Does a company profit from increases in its share price?

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