Replies to post #3025 on Investor Help (NO Ihub questions)

[cintrix]

I think you are thinking way too hard here. What you need to know is that market value is what the stock is trading at. A lot of the times a stock will trade over book value. Like for example, tsla,the price it is trading at is market value which is higher than its actual book value. If you really want to be a value investor you would want to find a stock that has a book value lower than where it is trading. Do a google search for "growth vs value" investing. You will find examples of how they differ.

[cintrix]

I sent that site a note regarding the wording of that line. I beleive they should have used the word "latter" and not "former" and I think this is why you are so confused. Here they say the opposite:
Investopedia explains 'Market Value'
1. In the context of securities, market value is often different from book value because the market takes into account future growth potential. Most investors who use fundamental analysis to pick stocks look at a company's market value and then determine whether or not the market value is adequate or if it's undervalued in comparison to it's book value, net assets or some other measure.
http://www.investopedia.com/terms/m/marketvalue.asp

I will let you know if they respond, but their two different explanations are contradictory imo.