Terms Beginning With 'a'

Aggregate market Value (AMV)

  • January 11, 2020
  • Team Kalkine

AMV indicates the size of the company, usually referred to in terms of market capitalization. So, it measures the combined market value of all the outstanding shares of a company. For example, a company with 200 million outstanding stock, currently trading at a share price of $1 will have an Aggregate Market Value of $200 Million (200 million outstanding shares * Current share price).

The stock exchange often places the minimum required value that needs to be maintained by the traded companies to avoid delisting or meet other conditions.

AVM is a key part of the Debt to equity ratio. Debt to Equity Ratio measures the ratio of debt and equity contribution to the company's capital. Generally, a higher debt to equity ratio may signify a higher risk to its potential investors.

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