Question

what is the difference between book value and fair value?

Answer 1

ANSWER:

So as to raise assets for activities, partnerships issue stocks to people in general. The holders of these stocks are called investors and measure of stock held by them speaks to their possession in the organization. These stocks are given at Par, at premium or at Discount according to the choice of the enterprises.

The stocks are principally of two sorts: in particular, normal and liked. The significant contrast between the two stocks among different contrasts is that, the favored investors are qualified for get fixed measure of profit and they convey the option to get the profits before the normal investors.

Contrast between advertise worth and book esteem: Market esteem speaks to the cost at which the stocks are purchased and sold in the open market. Then again, book esteem speaks to the worth determined by diminishing the liabilities from the advantages.