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Davidbike

04/11/19 7:32 PM

#32464 RE: hobowilly #32463

I think you get the concept. My point is take AMZN and AAPL for example. As of today, Amazon's price per share is 1844 (for simplicity round to 1800) with a market cap of 903 billion. Apple's price per share 198 (round to 200) with a market cap of 937 billion. Amazon's price per share is 9 times higher than Apple's, but in reality Apple's market cap size as of today is slightly bigger than Amazon.

I bet you if everybody in the USA started trading tomorrow that never looked at the stock market and you showed them AAPL and AMZN and didn't tell them about outstanding shares and market cap. A lot of them would probably think AMZN must be about 9 times bigger than APPL, but in reality Appl is about 3 percent bigger than AMZN.