After a company becomes public and starts trading on the exchange, supply and demand govern the market price of its shares. If there is a substantial demand for its shares for favorable reasons, the price would increase.
Market value, sometimes referred to as OMV or "open market valuation," is the cost that an asset would command on the open market or the estimation that the financial community makes of a specific equity or company.
One of the main reasons market value is important is that it provides a straightforward method for determining how much an asset is worth, removing any uncertainty or confusion. In the marketplace, buyers and sellers typically have divergent perspectives about a product's value.
The market value of a good or service is the price at which it could be offered on a free, open market.
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