3 ms·

If the 'true' value of the company is (say) $0.5 per share issued, haven't they effectively printed money?

• TomMarius 6y ago
  No, they just sold a chunk of the company and made a $0.5/share profit on it, probably by promising future profits; there is not even a guarantee that the buyer will be able to sell it for the same price they bought it. They might commit fraud and sell valueless shares and effectively "print money" (especially if people take loans to buy them), but I have a feeling that it doesn't work for long.
• netcan 6y ago
  What I meant was that printing a share at any price is printing money. Uber prints a share. An investor exchanges currency for it. The share goes into his account. He can treat that share as money for most purposes. For many uses of money (eg securing a loan, providing working capital..) it's as good as having foreign currency, sovereign or private bonds. For other uses (eg paying rent), it's fungible with currency/money/coinage/etc.. Shares can be overpriced, but so can currency. It's besides the point, imo.