Ask Matt: Do market values matter?

March 31, 2015 10:31 AM

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Ask Matt: Do market values matter?

A: Sizing up companies based on their market value is a bit of a sport. But there are reasons why market value is important to serious investors, too.

Market value is a way to measure how much investors are paying for the stock of a company. Calculating market value is done by multiplying a company’s stock price by its number of shares outstanding. Investors can use companies’ market values as a way to measure which companies are the most valuable...

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