3 ms·
This is incorrect. You can’t talk about absolute $8mill gain without talking about the total market cap (total value) of the stock. What would have happened tha
by shiv86 11y ago
This is incorrect. You can’t talk about absolute $8mill gain without talking about the total market cap (total value) of the stock.
What would have happened that the company its not increase by $8mill but increase by 8 times the current value which is more possible to happen for small cap stocks.
- lern_too_spel 11y agoIf I sell something for $50 million and need to spend $58 million to cover, I'm down $8 million. There's no need for an 8x increase in valuation.
- shiv86 11y agoYes agreed with your example. The total loss in your example is only 16%. In the example provided above he starts with $1mill and has a loss of $7 mill. Thats a 700% loss.
- deleted 11y ago[deleted]
- deleted 11y ago[deleted]