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That's not true, shares are a share of the companies assets and future dividends. There are "scavengers" out there who buy a company if its assets are worth mo
by dtech 2y ago
That's not true, shares are a share of the companies assets and future dividends.
There are "scavengers" out there who buy a company if its assets are worth more than the market cap, close down the company or otherwise spin out the assets, and thus earn more than they paid for the shares.
- marcus_holmes 2y ago> That's not true, shares are a share of the companies assets and future dividends. Possibly true 20 or 30 years ago, but now shares are speculative assets, their worth determined by what the market thinks they might be bought for by a greater fool.
- londons_explore 2y agoOnly for companies who are profitable or might be profitable in the future. If the company has no chance at future profit, it becomes a simple share of assets. There are plenty of companies with assets only and no revenue or employees.
- n4r9 2y agoAre assets not also worth "what somebody wants to pay for them"?
- marcus_holmes 2y agoThere are tons of examples of unprofitable companies, with no visible prospect of ever becoming profitable, trading at increasingly-higher values. Every tech bubble has their share of these.
- merb 2y agoyeah but 23andme was already falling when she wanted to buy the shares. It was overvalued and people already lost trust at the site.
- addicted 2y agoIf that’s the case then the likelihood of the remaining net assets being worth more than $8/share are even lower.
- deleted 2y ago[deleted]