4 ms·

But I think it is also clear that the theoretical buyer of every last share of Apple stock does not end up with a company "worth" $900 billion (it's current mar

by jo909 9y ago

But I think it is also clear that the theoretical buyer of every last share of Apple stock does not end up with a company "worth" $900 billion (it's current market cap). That metric and measurement of value just vanishes if there is no market any more. How you measure its "worth" from now on is completely arbitrary and debatable. Say he owns them all and then starts an auction for one share every day. Could you still take the price of that one share per day to determine a total value of the company? That is not in opposition of your argument. (Crypto)currencies are vastly different to stock in an established and profitable company. But also f.e. Uber stock is very different from Apple stock.

JumpCrisscross 9y ago
> Say he owns them all and then starts an auction for one share every day. Could you still take the price of that one share per day to determine a total value of the company? Minority discount models [1] are notoriously useless or hairy, owing to the complexity of the body of law governing what a controlling shareholder can and cannot do to minority shareholders (and how likely they are to get away with it). The inverse of those models is the control premium [2], the amount an acquirer is typically wiling to pay over the public stock price to buy every last share. We could quibble about whether the $900 billion company is worth $1 trillion or $800 billion after being taken over (with or without stubs [3]). What we will probably agree on is it is worth more than zero. That's all that is germane to my original argument. [1] https://www.divestopedia.com/definition/991/minority-discount https://www.divestopedia.com/definition/991/minority-discoun... [2] https://en.wikipedia.org/wiki/Control_premium https://en.wikipedia.org/wiki/Control_premium [3] https://en.wikipedia.org/wiki/Stub_(stock) https://en.wikipedia.org/wiki/Stub_(stock)

by jo909 9y ago

JumpCrisscross 9y ago

> Say he owns them all and then starts an auction for one share every day. Could you still take the price of that one share per day to determine a total value of the company? Minority discount models [1] are notoriously useless or hairy, owing to the complexity of the body of law governing what a controlling shareholder can and cannot do to minority shareholders (and how likely they are to get away with it). The inverse of those models is the control premium [2], the amount an acquirer is typically wiling to pay over the public stock price to buy every last share. We could quibble about whether the $900 billion company is worth $1 trillion or $800 billion after being taken over (with or without stubs [3]). What we will probably agree on is it is worth more than zero. That's all that is germane to my original argument. [1] https://www.divestopedia.com/definition/991/minority-discount https://www.divestopedia.com/definition/991/minority-discoun... [2] https://en.wikipedia.org/wiki/Control_premium https://en.wikipedia.org/wiki/Control_premium [3] https://en.wikipedia.org/wiki/Stub_(stock) https://en.wikipedia.org/wiki/Stub_(stock)