Bookkeeping

The share price decreases proportionally, making it more affordable for individual investors to buy shares. The percentage of ownership for each shareholder remains the same, meaning that the value of each share decreases. Stock splits are a way for companies to increase liquidity and make their shares more accessible to a broader range of investors. … Read more

Net realizable value contributes to an accurate accounting of a business’s net worth, or owners’ equity, which is determined by subtracting total liabilities from total assets. Net worth is a starting point for owners and investors in estimating the market value of a business when used together with income and cash-flow projections. Net realizable value … Read more