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Facebook's stock only dropped around 20%, while its market cap. dropped by 35%! Why is this?
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10-15-2012, 09:05 PM
Post: #2
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The price of a stock has more to do than just the value of the company. Even though those individual shares are technically overvalued because the share went 20% down in price yet the value went 35% down, it all comes back to supply and demand. If enough people are buying the shares than it is possible that the price of the share may be higher than what it's actually worth (which is why it's called an "overvalued" stock)
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Facebook's stock only dropped around 20%, while its market cap. dropped by 35%! Why is this? - Geoff Joko - 10-15-2012, 08:56 PM
[] - Joe - 10-15-2012 09:05 PM
[] - scobranchi - 10-15-2012, 09:05 PM
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