Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Asset Play?

April 26, 2017ASSET assets company's assets market capitalization play stock stocks

0

Posted

What is Asset Play?

1 Answer

0

Posted

Asset play has to do with determining the relationship between a given stock and the other assets that are in the possession of the stock issuer. This may involve corporations as well as small businesses that issue stock to outside investors. Generally, asset play is understood to be a situation where the value of the stock is considered to be undervalued for some reason, in comparison or relation to the other assets that art owned by the company. Here are a couple of reasons why maintaining a balance between the worth of the stocks and the company’s assets is important. One of the main things about determining the status of asset play is that it involves preparing a complete and true picture of the market capitalization efforts of the company. Market capitalization is simply the current value of the company, based on the number of stocks that have been issued by the corporation, and based on the current fair market value price per unit. Basically, the formula for calculating market ca