Book Value (BV) vs. Market Value (MV)

Foxie asked what Book value versus Market value means:

Book Value = the actual amount you put into the account, like if you put in $5000.

Market Value = what the market values that $5000 to be at, like right now, it’s $3000 but technically your book value, or what you invested is $5000.

And in the future, that $5000 may become $8000. It’s what the market thinks your $5000 is worth based on how many people are buying it and what THEY value it at.

Alternatively, you can think of it as putting in $10 to buy a single share of a stock, priced at what the market thinks it was worth at that time. In a year, when the stock goes up to $15, the market value is now $15.

Any other questions? 🙂

About the Author

Just a girl trying to find a balance between being a Shopaholic and a Saver. I cleared $60,000 in 18 months earning $65,000 gross/year. Now I am self-employed, and you can read more about my story here, or visit my other blog: The Everyday Minimalist.