1. The net value of a stock

Shareholders need to pay close attention to this figure for listed companies. The net value of a stock, also known as book value or net assets per share, is the net asset value per share calculated using statistical methods. It is calculated by dividing the net assets of a company (including registered capital, various reserves, accumulated surplus, etc.), excluding debt, by the total share capital to obtain the net value per share. When the book value of a joint stock company is higher, the more assets the shareholders actually own. This is one of the most important bases for stock investors to assess and analyse the strength of a listed company, as these figures are accurate and credible after professional financial statistics.

2. Issue price of shares

The issue price of shares is a more reasonable issue price set by the company in relation to its own financial situation, and this price is called the issue price of shares. When shares are listed and issued, the listed company issues shares at a set par value in its own interest and to ensure the success of the listing.

3. Nominal value of shares

The nominal value of a share is the face value of the shares issued by a joint stock company and is used to indicate the amount of capital contained in each share. For example, the nominal value of a share circulating on the Shanghai Stock Exchange in China is RMB 1, i.e. RMB 1 per share.

4. Market price of shares

The market price of a stock is a direct reflection of the stock market and is the basis for shareholders to purchase shares. The market price of a stock fluctuates from year to year due to a number of factors and is a concentrated reflection of the market value of the stock and is therefore also referred to as the market price of the stock.

5. Liquidation price of shares

The liquidation price of a share is the actual value of a share at the time of liquidation following the bankruptcy or collapse of a joint stock company. In theory, the liquidation price per share should correspond to the book value of the shares, but the value of the business property in bankruptcy liquidation is calculated on the basis of the actual sales price, which is generally lower than the actual value of the property at the time of disposal. Therefore, the liquidation price of the shares will then not correspond to the net value of the shares. The liquidation price of shares is only used as a basis for determining the price of shares in the event of liquidation of a joint stock company due to bankruptcy or other loss of legal personality, and has no significance in the process of issuing and circulating shares.

（Writer：Ciki）