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eniwetok

(1,629 posts)

16. portfolio value is not real value

Reply to CincyDem (Reply #15)

Tue Apr 11, 2017, 06:32 PM

Apr 2017

Market cap is based on a bogus concept that "the market" has truly "valued" a corporation's worth by applying today's stock price to ALL shares even if an infinitesimal percentage of the company's shares were even traded that day.

Problem is as soon soon as 2-3-4% of shareholders try to cash in... the value goes down. 10%... the price plummets.

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Highlight:

Uniteds stock is set to fall 2% and wipe $500 million off the airlines market cap [View all] BigBearJohn Apr 2017 OP

Should have offered more cash to empty those 4 seats, eh ? CincyDem Apr 2017 #1

+1000 Pachamama Apr 2017 #3

Or "Pyrrhic Victory" - nt KingCharlemagne Apr 2017 #9

They should do something about all four officials who caroldansen Apr 2017 #2

Were they United employees? Baconator Apr 2017 #5

Their fate will be determined by their ticket pricing ecstatic Apr 2017 #4

They'll wait it out... Baconator Apr 2017 #6

Yup absolutely nycbos Apr 2017 #13

Hit 'em in the wallet HAB911 Apr 2017 #7

Sadly, a well-deserved stock price dive is about the only thing that will prod action from United. LonePirate Apr 2017 #8

-or- How a CEO loses his job in one day BigBearJohn Apr 2017 #10

Six percent. Ouch. eom littlemissmartypants Apr 2017 #11

Could have purchased a plane to fly those employees - or 4 planes, one for each Justice Apr 2017 #12

market cap is a bogus concept eniwetok Apr 2017 #14

yes - that's exactly what would happen. CincyDem Apr 2017 #15

portfolio value is not real value eniwetok Apr 2017 #16

Sure - ok. CincyDem Apr 2017 #19

sure market cap is misused... eniwetok Apr 2017 #21

You could expand that same argument to pretty much anything of value Major Nikon Apr 2017 #22

The CEO needs to go. sarcasmo Apr 2017 #17

That was one expensive blunder. lpbk2713 Apr 2017 #18

Couldn't happen to a nicer bunch of guys! LongTomH Apr 2017 #20