Respuesta :
Answer:
True .In a state of market equilibrium, the intrinsic value of the stock will be the market price of the stock.
When the market price and intrinsic value are in equilibrium, investors have no preference as to whether to purchase or sell a stock. There's no fundamental imbalance if a stock is in equilibrium, hence there is no pressure for the price of the stock to move.
Explanation:
What is the difference between intrinsic value and market value of a stock?
Ans: Though both are methods of assessing a company, there is a substantial distinction between intrinsic value and market value. Regardless of market value, intrinsic value is an estimation of the true worth of an organization.
Intrinsic value -Intrinsic value is the key metric used by value investors to evaluate a firm. The theory holds that it is desirable to invest in businesses whose genuine value is higher than the market's current estimate of it.
Market value- Market value, which itself is determined by a company's current stock price, rarely reflects its true current value. Instead, market value is more or less a reflection of how the general public feels about a company.
To know more about 'Intrinsic value', visit : https://brainly.com/question/17054246
#SPJ4
