Answer (C) is correct. A stock’s book value is the amount of net assets available to the holders of a given type of stock, divided by the number of those shares outstanding. The market price is the amount that a stock market investor is willing to pay for the stock. The two values are normally different because the book value is based primarily on historical cost expressed in nominal dollars. Accordingly, the book value may be misleading because book values of assets may differ materially from the fair values of those same assets.