Newbie at stocks..but..?

[flameboy]

Can someone tell me whats the difference between book value and market value?

 

[cmeduck]

book value is "according to the books" and market value is "according to the market" so its what the accounting says versus what people think it's worth.

Jeff
http://www.best-stock-trading-systems.com/stock_market_for_dummies.html

 

[hidingbehindthisemailaddy]

Book value is the accounting value of a firm. It has two main uses:

1. It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.

2. By being compared to the company's market value, the book value can indicate whether a stock is under- or overpriced.

3. In personal finance, the book value of an investment is the price paid for a security or debt investment. When a stock is sold, the selling price less the book value is the capital gain (or loss) from the investment.

simply put book value is what all the nuts and bolts that make up a company are worth.
market price is what investors are willing to pay for the company.
p/e price to earnings ratio varies by industry but the higher the p/e the more people are willing to pay for the stock.
1)get a broker or 2)do alot of homework3) invest in mutual funds best bet #3.
www.morningstar.com good luck

 

[Michael K]

book value is total assets minus total liabilities divided by the number of shares outstanding. market value is the current price that the outstanding shares trade at.