Re:Vanguard Is Growing Faster Than Everybody Else Combined
by uiri on Wednesday April 19, 2017 @12:53PM
(#14149251)
No, the decision is in the context of the market capitalization, not the stock price. If $10M company has a share price of $50/share, then it has 200,000 shares outstanding. If it has a price of $100/share, then it has 100,000 shares outstanding. A buyout, merger or acquisition is based on the total value of the company, not based on the smallest unit of ownership in that company.
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Re:Vanguard Is Growing Faster Than Everybody Else Combined
by lmm on Thursday April 20, 2017 @03:50AM
(#14154730)
And market cap alone is misleading without considering debt as well. But all that is technical nitpicking. The point is that the stock price is a measure that directly feeds into the overall value of the company that potential buyers etc. will consider.