It’s extrapolated money. If a share is worth $130, and there are 7700000000 shares, then the company is worth a trillion dollars. But if all the shares we to be sold at the same time, almost nobody would buy them at the $130 price. Instead, the few who would buy these would do so at a near zero price, thus making the company be worth $0.
It’s almost like Bitcoin, only instead of the zero inherent value of Bitcoin, companies have a little bit of value behind the extremely bloated stock prices.
It’s extrapolated money. If a share is worth $130, and there are 7700000000 shares, then the company is worth a trillion dollars. But if all the shares we to be sold at the same time, almost nobody would buy them at the $130 price. Instead, the few who would buy these would do so at a near zero price, thus making the company be worth $0.
It’s almost like Bitcoin, only instead of the zero inherent value of Bitcoin, companies have a little bit of value behind the extremely bloated stock prices.