As finance professionals, it is essential to understand the concept of market value, which refers to the total dollar value of volume traded within a specific time frame. This value is calculated by multiplying the price of a security by the number of shares traded and then dividing it by 100. This calculation allows us to determine the overall activity and liquidity of a particular security, providing valuable insights for investment decisions. So, always keep in mind the significance of market value in your financial analyses.
