Answer: the value placed by investors based on a complete understanding of the security's investment characteristics.

## Explanation **Intrinsic value** is a fundamental concept in security analysis that refers to the **true underlying value** of a security based on its investment characteristics, such as: - **Cash flows** (dividends, interest payments, etc.) - **Growth prospects** - **Risk profile** - **Fundamental financial metrics** (earnings, book value, etc.) Let's analyze each option: **Option A**: "the price at which the security can be bought or sold." - This describes the **market price**, not intrinsic value. Market price is what you actually pay or receive in transactions. **Option B**: "represented by the intersection of supply and demand for the security." - This also describes **market price**. The intersection of supply and demand curves determines the current market price, which may or may not reflect intrinsic value. **Option C**: "the value placed by investors based on a complete understanding of the security's investment characteristics." - **CORRECT**. This accurately describes intrinsic value as the estimated true worth of a security based on fundamental analysis of all relevant investment characteristics. ### Key Distinction: - **Intrinsic value** = What a security *should* be worth based on fundamentals - **Market price** = What a security *actually* trades for in the market When market price < intrinsic value, the security is considered **undervalued** (buying opportunity). When market price > intrinsic value, the security is considered **overvalued** (selling opportunity). This concept is central to **value investing** and fundamental analysis approaches.

Author: LeetQuiz .