rafunrafun Saturday, 01/12/19 09:36:45 AM Re: ChrisInSF post# 171854 0 Post # of 172906 I don't understand how people (especially those who claim to be finance guys) conflate the *buyout stock price* with the **current stock price**. The argument 'it can't sell for $100 because it's only $18 today' is just nonsense. So it could sell for $50 today but could not sell for $50 last Friday when it reached $11? Again, complete nonsense. *Buyout stock price* is calculated by dividing the agreed upon value ($25 billion) by the amount of outstanding shares. **Current stock price** is what the market believes that the company is worth this very moment. Market is always 'wrong', as the price moves daily, on no news. For example, are we really worth 50% more today than exactly 1 week ago? The market thinks so, but did anything really change, other than the perception? Of course not. So when Thero negotiates with Pfizer's CEO, when they agree to a final BO price ($25 billion), they do not care if today's stock price is $11 or $18 or $30. Premium is calculated AFTER THE FACT, to measure how the right/wrong the market was at the moment. Huge miscommunication is that the BO price is dictated by the current stock price.