DETERMINING THE PURCHASE AND SALE VALUE OF SHARES BY ESTIMATING THE VALUE OF THE CAPITAL

Abstract

The aim of this paper is to point out the fact that without determining the value of shares, their sale cannot be done, because any investment brings certain risks and uncertainties, so it should be done based on financial analysis of the company and determined fair value of its capital. Realistic and adequate assessment of the value of the company’s capital is of multiple importance for the potential investor when making an investment decision. Determining the fair value of shares also protects „small“ shareholders whose shares the investor wants to repurchase. In this paper, an assessment of the value of the capital of the company „X“ AD was performed and the fair price of one share was formed, which the bidder should offer to „small“ shareholders and buy them back. Therefore, the financial analysis of the company was used (determining the market position of the company, its return, property and financial position) as well as the usual methods of estimating its capital (adjusted book, property, return and liquidation value of the company).