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Re: Dr PennyStock post# 48932

Monday, 03/08/2021 10:31:59 AM

Monday, March 08, 2021 10:31:59 AM

Post# of 54519
That and Market Cap changes constantly with every buy/sell order. Market Cap is good to get an idea but never tells the whole story. Any time I see someone say "look at the Market Cap" whether they say it in a negative or positive light I say to myself, "Newb trader here" lol. Market cap never tells the whole story. There could be sell off in 5 minutes and the market cap will shrink. Likewise it could sky rocket if everyone buys.

You can buy a car $50k but doesn't mean it's worth $50k. It's just what you paid for it. Likewise you can buy a car for $20k and the next guy will think it's worth $50k and is willing to purchase it for that much. Market Cap has to do with price and has nothing to do with the value. It's just a multiplication of the last transaction price by the circulating supply.

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