book
value of a
stock is determined from a
company's records, by adding all assets (generally excluding such intangibles as good will), then deducting all debts and other
liabilities, plus the
liquidation price of any preferred
issues. The sum arrived at is divided by the number of common shares outstanding and the result is book
value per common
share. Book
value of the assets of a
company or a
security may have little or no significant relationship to
market value.