book to market
Financial Dictionary — Finance & Capital Markets
Definition
book to market is the ratio of the firm's book equity to market equity.
Common Uses
- Used in capital markets for disclosure, valuation, and investor communication.
- Used when interpreting securities, filings, and market indicators.
- Used when interpreting securities, filings, and market indicators.
Practical Example
- Example: Investors reference **book to market** when assessing risk/return and interpreting public disclosures.
Why This Term Matters
- Why it matters: Improves transparency for investors and supports pricing, funding, and governance decisions.