An investor is keen to know a stock`s intrinsic value rather than its stock price or market price.Select one:TrueFalse

Understanding Intrinsic Value vs. Market Price

1. Definition of Intrinsic Value: Intrinsic value refers to the perceived or calculated value of a company, based on fundamental analysis without reference to its market value. It considers the company's assets, earnings, and potential for future growth.

2. Market Price Context: The market price is simply the current price at which a stock is trading on the stock market. This price can be influenced by investor sentiment, market conditions, and external factors.

True or False Analysis

3. Investor's Interest: An investor who is keen on understanding a stock's intrinsic value is focusing on a fundamental perspective, which informs them about the stock's true worth based on its financial performance and growth potential, rather than just what the stock is currently trading for.

Final Answer

True: An investor is indeed keen to know a stock's intrinsic value rather than just its stock price or market price.