Monday, May 12, 2003 1:33:41 PM
OK, maybe I'm the only investor who does not look up the market cap and divide it by the total shares outstanding to find out what the share price is. I really thought it worked the other way. Good thing you and Corp_Buyer explained that process.
I can't believe you don't understand this. Please consult your broker, investment advisor or an investor you trust and respect and ask about it.
But why does the ticker show stock prices? Shouldn't we be seeing market cap and shares outstanding numbers go by so we could all be doing it right? LOL!
Because we buy shares so that is a meaningful figure. However, decisions are made based on the value of the company, which comes out the same whether you compute the market cap and divide by shares, or divide all the relevant financial information by the number of shares to get a per share data to use.
Gotta go figure some share prices and quit looking at these quotes I'm getting from Charlie Schwab. Somebody better tell him he is doing it wrong too, I'm busy dividing numbers.
Why does the share price fall 50% when a 2:1 split occurs?
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