InvestorsHub Logo
Followers 6
Posts 515
Boards Moderated 0
Alias Born 04/25/2010

Re: Will Lar post# 232827

Thursday, 12/12/2019 8:57:30 AM

Thursday, December 12, 2019 8:57:30 AM

Post# of 426561
@ Will Lar and HG...re: valuation.

Yes. The stock price is just a medium to reflect the total value of a company and allows miniscule portions of a company to be traded. Buyers and sellers determine an equitable price at any given point in time. (I know...I'm stating the obvious!)

As an analogy, I would use a kilo bar of gold to represent the value of AMRN. That bar could be melted down and coined into 32 1-ounce coins or ingots. Those 32 items would be the 'shares' of the company. Those 'shares' could be further divided into half-ounces, grams or whatever if so desired
.
The 'shares' are a medium of exchange reflecting the value of the kilo of gold (AMRN, the company in this example). The desirability of gold today may be traded at $1500/oz today, and maybe it will be $1475 on Friday and maybe $1525 the following Monday. It's a tug-of-war between buyers & sellers trying to peg a value on that one ounce of gold that together with the other 31 ounces makes up the kilo bar.

The point is, shares are just a medium of exchange, priced based upon the perceived value of a company. Nothing more, nothing less.

Cheers!
Flubber
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent AMRN News