Is stocks volume x price = company assets?
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03-14-2014, 12:39 PM
Post: #2
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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. Ads |
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Is stocks volume x price = company assets? - Bunny - 03-14-2014, 12:24 PM
[] - o - 03-14-2014 12:39 PM
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