Question on: SS1 Accounting - Valuation of Stock

The purpose of stock valuation is to determine the intrinsic or fair value of a company's shares. This helps investors make informed decisions about whether to buy, sell, or hold a stock. * **A.** To determine the worth of a company's shares of stock - This is the primary purpose. Stock valuation methods are employed to estimate the share price. * **B.** To track employee performance - This is not related to stock valuation. * **C.** To calculate taxes owed - While stock valuation can impact tax calculations, it is not the primary purpose. The main focus is on the value of the shares themselves.