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Market cap is number of shares times share price. Is this equivalent to total amount of money that went into AAPL? Did investors put in 1 trillion dollars?
by leptoniscool 8y ago
Market cap is number of shares times share price.
Is this equivalent to total amount of money that went into AAPL? Did investors put in 1 trillion dollars?
- filleokus 8y agoI don't think so. All of the money put into to AAPL (via the public stock market) is all the stocks issued via public offerings * the price of the offering, no? After that they have just been traded without Apple seeing any of that money. Stocks given as compensation also contribute in some way, if we expand on "money" as to include forgone income by the employees.
- jjmorrison 8y agoNo - imagine if you had bought 100% of Apple shares for $1 at incorporation, and then sold 1 share for $207. That would make the market cap $1T and the total investment would be only $208. It's more that the investments into Apple + the amount of money made by shareholders equals $1T.