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Thanks I think your explanation makes more sense to me and I do think fundamentals are not right. I am not a finance guy so I don't understand a lot of thing bu
by drieddust 10y ago
Thanks I think your explanation makes more sense to me and I do think fundamentals are not right. I am not a finance guy so I don't understand a lot of thing but
Facebook has issued 44.22B in common stocks and Zukerberg's personal worth is 50B plus. How does that work? In a way entire common stock is contributing to his wealth.
I personally think a lot of investors will be the suckers in this game in the end.
- chrisabrams 10y agoI would love to be the sucker who made millions (or billions) from Facebook.
- drieddust 10y agoYou will be the sucker if you couldn't dump yours stocks on somebody right before the nosedive :)
- edblarney 10y agoThe share structure is kind of a different thing. There are shares outstanding, generally they are 'worth' the same, but with some differences maybe due to voting which affects price a little ... Most of the companies stock are not 'floating' meaning, they are not out there on the market. So Zuck's shares are not. The 'share price' is usually just the price of the last transaction of buy/sell on the stock. If Zuck sold all his shares at once, he mighn't be able to get that price. But he wouldn't anyhow. There's nothing nefarious about 'others contributing to his wealth' - people are generally buying the floating shares given what they think it's worth. But here's a trick: if a company has a 'high profile' - often it's shares have some premium simply because there are more people looking at it. Supply and Demand.