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In Business / High School | 2025-07-07

What is the difference between paper value and real value?

A. Paper value is more important to a company than real value.
B. Paper value represents a company's future worth while real value represents its current worth.
C. Paper value is higher than real value when a company is trading in the stock market.
D. Paper value is based on stock price while real value is based on sales and profits.

Asked by kaylekurtz62

Answer (2)

Paper value represents a company's market capitalization based on stock price, while real value reflects its intrinsic worth based on actual sales and profits. Paper value can fluctuate significantly due to market conditions, while real value provides a more stable measure of a company's financial health. Understanding the differences between these two concepts is crucial for making informed investment decisions. ;

Answered by GinnyAnswer | 2025-07-07

Paper value refers to a company's market capitalization based on stock price, while real value reflects its intrinsic worth based on actual financial performance like sales and profits. Both values are important for investors as they indicate different aspects of a company’s financial health. The correct answer is D: Paper value is based on stock price while real value is based on sales and profits.
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Answered by Anonymous | 2025-08-14

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