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Re: JustGoDeep post# 116447

Wednesday, 11/22/2017 9:44:23 AM

Wednesday, November 22, 2017 9:44:23 AM

Post# of 329210
Wrong. Market Cap is just the market value of a company's outstanding shares. The value of a company is equal to ASSETS minus DEBT.

Example: imagine a company that is $30 million in debt with $200,000 in assets. That company has 18 billion shares outstanding and is trading at .0006.

That company has a market cap of $10.8 million but that company does not have a VALUE of $10.8 million. It has a VALUE of -$29,800,000.

"Perceived future value" is a different thing entirely, and that perfectly describes the phrase "pyramid scheme."

Oh My Gosh, indeed. Comparing the VALUE of two companies by market cap alone without counting assets and debt? Laughable.