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Re: KingErik999 post# 16813

Thursday, 09/12/2013 6:32:20 PM

Thursday, September 12, 2013 6:32:20 PM

Post# of 68833
Many times a company will take a stock that isn't worth as much and value it as higher, as they believe it will grow much more than that

i.e. REVO giving only 20 million worth of shares for a company worth 30 million, because the company believes their shares will soon be worth 35-40 million because of future growth.

It is actually more common than you might think. Some companies however, will only do an exact market value transfer, no matter the profitability projections. Those companies we use actual cash on :D
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