4 ms·
Kinda OT: Market Capitalization is the total amount that all the shares of stock for a company is worth. Is there a term or measure for how much people have act
by csours 10y ago
Kinda OT: Market Capitalization is the total amount that all the shares of stock for a company is worth. Is there a term or measure for how much people have actually paid for the stock?
ie, as a founder I have 20% of the stock, but I never paid for it. As the stock goes up, the highest bids raise the nominal value for the whole body, but for most of that value (for a startup at least), the stock owner has not had to pay anything.
- roymurdock 10y agoThere are 2 reasons (income stream-wise) to own stock: capital gains and/or dividends. Capital gains = sale price - purchase price
- n00b101 10y agoI think the accounting term you're looking for is "paid-in capital"
- csours 10y agoThat sounds like the term I was looking for, thanks!
- cgio 10y agoPaid in capital would be only with regards to what the company received when issuing the stock. For transactions thereafter in the secondary market, paid in capital remains the same regardless the market price. You can calculate what you ask for by using market data (i.e. volume of transactions at each price point in the life of the instrument, taking into account splits etc.)
- csours 10y agoIs volume at price recorded, tracked and reported? I know people pay a lot of attention to stock prices and volume
- adventured 10y ago> Is there a term or measure for how much people have actually paid for the stock? Cost basis. That's what the IRS will want to know when it comes time to sell.
- TrickedOut 10y ago"As a founder I have 20% of the stock" You did pay, you just paid with hard work and lost easy income.
- stevewilhelm 10y agoIn some cases, not all shares are alike. See preferred vs common stock.