Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!lsuc!dave
From: dave@lsuc.UUCP
Newsgroups: can.politics
Subject: Re: market crash
Message-ID: <2191@lsuc.UUCP>
Date: Sun, 15-Nov-87 16:52:39 EST
Article-I.D.: lsuc.2191
Posted: Sun Nov 15 16:52:39 1987
Date-Received: Mon, 16-Nov-87 07:20:09 EST
References: <11436@orchid.waterloo.edu> <1034@utflis.UUCP>
Reply-To: dave@lsuc.UUCP (David Sherman)
Distribution: can
Organization: Law Society of Upper Canada, Toronto
Lines: 24
Summary: "value" means what one is willing to pay for it

smithsco@flis.toronto.edu.UUCP (Scott Alan Smith) writes:
>
>>dave@lsuc.UUCP (Dave Sherman) writes:
>>The value of the company is, by definition, what the market sets.
>
>I thought that the value of the company - as it appears on its financial
>statements and therefore to its bankers - was the book value which seldom
>has any correlation to its market value.

Book value is often used on financial statements, but it's
rarely what the bankers will be interested in.  The prospects
of a company as a going concern have little relationship to the
book value of its assets.

The "value" of anything is what it's worth -- what someone is
willing to pay for it.  The stock market is the ultimate
example of setting such a value "in the market".

David Sherman
The Law Society of Upper Canada
Toronto
-- 
{ uunet!mnetor  pyramid!utai  decvax!utcsri  ihnp4!utzoo } !lsuc!dave
Pronounce it ell-ess-you-see, please...