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+--- Thread: Is stocks volume x price = company assets? (/thread-109982.html)
Is stocks volume x price = company assets? - Bunny - 03-14-2014 12:24 PM
So twitter stocks cost $26 per share, and they have about 70 million shares.
Does that mean Twitter is worth $26 x 70 million = $1.8 Billion?
But then i read somewhere.. Twitter is worth over $11 Billion.
I dont understand.
I really want to understand about the whole stocks thingy.
I want to learn about stocks and buy some (not necessarily twitter stocks) but dont know where to start or what to read?? thx
- O - 03-14-2014 12:39 PM
If Twitter is doing an Initial Public Offering (IPO) and offering 70 million shares to the public, it means nothing more than that: what is being offered to the public. It does not mean that the company itself is worth $1.8 billion. To the IPO amount you must add the shares held by Twitter's current owners including the founders, directors, employees and other parties. These are obviously not being offered to the public. It is the aggregate of all these and the IPO shares that gives the value (or market capitalization) of the company. The IPO price is used to value all the shares outstanding.
By way of introduction to money management and investing in stocks, please read these two books:
"The Richest Man in Babylon" by George S. Clason
"Learn to Earn" by Peter Lynch.