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tnewell
Premium
join:2001-02-12
Columbus, GA

reply to SterlingJ85

Re: um

Market cap is current market value of the entities stock price for its issued and outstanding shares. That is the money that stockholders are paying for the stock ownership. It does not fund deficit spending by the entity. The money spent for a share of stock does not go to the issuer on the secondary market. They only get money on initial offering and that is another story all together becasue the company does not get all of the money on an IPO. A Loss is still a Loss no mater how you sugar coat it, a company that continually racks up lossess will not survive no matter its market cap.

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