Stock is a form of virtual capital and has no value in itself. In essence, the stock is only a certificate of ownership. The reason why stocks are valuable is that the holders of stocks, that is, shareholders, can not only participate in the shareholders' meeting and exert influence on the management decisions of joint-stock companies, but also enjoy the right to participate in dividends and obtain corresponding economic benefits. Similarly, in the case of a certain number of shares, the greater the economic benefits the holder can obtain, the higher the price of the shares.
The net value of a stock, also known as book value and net assets per share, is the net assets per share calculated by accounting statistics. Its calculation method is to divide the company's net assets (including registered capital, various accumulation funds, accumulated surplus, etc.) by the total share capital (excluding debts) to get the net value per share. The higher the book value of a joint-stock company, the more assets shareholders actually own. Because book value is the result of financial statistics and calculation, the data is accurate and reliable, so it is one of the important basis for stock investors to evaluate and analyze the strength of listed companies. Shareholders should pay attention to this data of listed companies.
The liquidation price of shares refers to the actual value of each share when a joint-stock company goes bankrupt or goes into liquidation after its collapse. Theoretically, the liquidation price per share of a stock should be consistent with the book value of the stock. However, when an enterprise goes bankrupt and liquidates, its property value is calculated according to the actual sales price, while when disposing of the property, its sales price is generally lower than the actual value. Therefore, the closing price of the stock will be inconsistent with the net value of the stock. The liquidation price of stocks is only used as the basis for determining the stock price when a joint-stock company loses its legal personality due to bankruptcy or other reasons, and it has no significance in the process of stock issuance and circulation.