Paper Valuation is the value of privately held

shares In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...

that is not directly tradeable at an exchange. This notional value, though, is as yet untested on real buyers. The opposite of paper value is exchangeable value, and is the value that is directly monetizable as long as there is a willing buyer and a willing seller. Thus, if the aside exchange was made as an "Exchange Valuation" this new company valuation would be tradeable directly on the

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

. One problem with Paper Valuation is that it is not that easy to monetize in a short time period. This valuation concept is a cornerstone in the stock exchange world. Value exchange is paramount to its existence.

See also