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Yes, yes, in theory it has no stock price. In practice if I do want to sell - privately or not - I wouldn't get anywhere as much as the price was beforehand.
by Tenoke 5y ago
Yes, yes, in theory it has no stock price. In practice if I do want to sell - privately or not - I wouldn't get anywhere as much as the price was beforehand.
- chii 5y ago> I wouldn't get anywhere as much as the price was beforehand. that's not a conclusion, but an assumption you make. The price of a stock can only be found by transacting, and if this isn't taking place, you cannot draw any conclusions about the price of a stock. You can only guess it - via some method like cashflow analysis, or some other model.
- Tenoke 5y agoIt's pretty obvious we are indeed guessing given that this is a hypothetical. My guess is that if suddenly I own 100% of Tesla, the company will be worth a lot less after that. It is clearly not based on actual transactions or offers to need to specify that it was a guess.
- mcguire 5y agoThat is true, but only because a) the market for entire companies is fairly small, and b) Tesla, overall, is vastly overvalued. If you look at other companies like Dell, or the various acquisitions of Berkshire Hathaway, you would find plenty of examples of people deciding the market price of companies was less than the value, doing exactly what you are arguing can't happen, and making money from it.