jeremyp
Philosopher
You guys should find out how the sharemarket works.
People are prepared to pay $x for a share. Consequently, the company is worth that times the number of shares. If people weren't prepared to pay that much, the value would fall.
I learned that stuff first at high school in the third form. (Year/Grade 9)
But that's wrong. The current share price does not reflect the value of the company, only the price. Even then, it only represents the price of the last share sold, as you would find out if you had a lot of shares like Elon does in Tesla and tried to sell some of them. As soon as you start selling, the price will start dropping.
It's only a realistic guide to the price of the company if somebody wants to buy all the shares at once. Even then, the buyer may offer a price higher than the current share price, as Musk did with Twitter. That's why I was careful to say "Twitter was never really worth $44 billion except to its shareholders for a brief period".
