4 ms·
that's their valuation until someone pays a different price for a share or they go out of business.
by dsugarman 12y ago
that's their valuation until someone pays a different price for a share or they go out of business.
- adventured 12y agoThat is not how their value would be accounted for from any actual accounting or tax standard that has ever existed in the US. Using your premise, feel free to try arguing with the IRS that your billion dollar company is worth only $100 based on you having sold one share for a penny.
- Mvandenbergh 12y agoThe value of wealth 'at rest' isn't too important from a tax point of view in the US (except for real property) since there isn't a wealth tax in the US. Transactions are taxed, and if you sold a share for a penny the cap gains you paid would be based on that price. (Of course, the IRS would be suspicious of that kind of economically implausible transaction)