Which of the following is most likely to have the lowest value in a long-established successful company? a) Authorised share capital. b) Market capitalisation. c) Issued share capital. d) Number of issued shares x current share price.

Which of the following is most likely to have the lowest value in a long-established successful company? a) Authorised share capital. b) Market capitalisation. c) Issued share capital. d) Number of issued shares x current share price.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 21MC: Which of the following measures the portion of a corporations profit allocated to each outstanding...

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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Which of the following is most likely to have the lowest value in a long-established
successful company?
a) Authorised share capital.
b) Market capitalisation.
c) Issued share capital.
d) Number of issued shares x current share price.

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