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Definition

Company value determined by investors, obtained by multiplying the current price of company stock by the common shares outstanding - in other words, the market capitalisation of the share. The market value of a share is its most recent "last transaction" price. The search for the company's or share's "real" value is the work of the fundamental analyst. What we can be sure of is that the market value oscillates from being above the "real" value to being below it as sentiment varies. The market value of a share should be distinguished from its "cost" value or its "stop-loss" value. The cost value is what was paid for the share at some point in the past when it was purchased. The stop-loss value is its value based on the stop price which you have established as the price where you will sell the share if it begins falling. It is always wise to value your shares at their stop-loss value because then you will not experience any pain if they fall to that level and you have to sell them.

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