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Public market transactions don't change the number at all, because every transaction has a buyer and a seller and the money in is the same as money out (except
by tlb 8y ago
Public market transactions don't change the number at all, because every transaction has a buyer and a seller and the money in is the same as money out (except for a few basis points to the brokers and exchange).
The only thing that moves the number is when the company itself sells stock. So you can add up all the private funding rounds and secondary offerings to get the number you want. Crunchbase has it for most companies including public ones. For example, "Tesla has raised a total of $14.5B in funding over 29 rounds" https://www.crunchbase.com/organization/tesla-motors#section-funding-rounds https://www.crunchbase.com/organization/tesla-motors#section...
- EGreg 8y agoWhy, if people first buy at price X, then sell at Y>X now people bought in at Y, so the number goes up. That one transaction increased it by Y-X. Where am I wrong? Aha I see. I guess what I want is to sum up all the Y-X where the person “bought in at X and sold at Y”. How do I get that info? If we had 100% gold reserves for every bank then you could just count the reserve of gold at the bank to know how much that bank was in demand vs others. Similarly we do this when businesses accept consumer cash - however much cash is in the business account represents how much in demand its products are. It is the integral of the money velocity into the business from its inception. I want that but for a stock.