Re:Tesla Surges Above $500, Leaving Analyst Targets in the Dust
by bryanlarsen on Monday January 13, 2020 @01:07PM
(#22036925)
Every single fair transaction has a net value of $0. If I buy a chocolate bar for $1 that's worth a dollar to me, I'm up one chocolate bar worth $1 and down a dollar. No net worth change, but it is validation the chocolate bar is worth $1.
I'd love to create lots of value for you by borrowing money from you. I would even consent to not destroy any of that value through making payments.
The bond is worth $300b to the bondholders, but only because it is expected to be paid back and is secured by the $300b assets. You can prove that by assuming those assets disappeared: how much is the bond (or the company) worth to the bondholders then?