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If “Money lost” means stock valuation decline or overpaying for another company, that he may be able to salvage. And not yolo on meme stonks and realize all the
by darth_avocado 4y ago
If “Money lost” means stock valuation decline or overpaying for another company, that he may be able to salvage. And not yolo on meme stonks and realize all the losses.
- encoderer 4y agoIf you dramatically overpay for an asset you have lost money. It’s not just logically correct, it’s also gaap mark-to-market accounting.
- lazide 4y agoOnly when someone figures out what the fair price actually is. Which depends of course on who is doing the accounting and when/if mark to market actually happens (which doesn’t necessarily need to, for most entities).
- ChuckMcM 4y agoWell to be fair the Alameda fiasco had them over valuing FTT tokens (which is kind of like over paying for a stock right?) I mean she didn't "lose" money, the assets that she collateralized her loans with became worthless so she couldn't repay them. But I think that gets way into accounting arcana which Matt Levine does a much better job of explaining than I ever could!