the stock market

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the stock market

Postby TerraFrost » Tue Jul 03, 2007 5:11 am

GM's market cap is $21.51 billion and they made $198.88 billion in revenue, last year:

http://finance.yahoo.com/q/ks?s=GM

GOOG's market cap is $165.22 billion and they made $12.02 billion in revenue, last year:

http://finance.yahoo.com/q/ks?s=GOOG

Just food for thought :)
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Postby Dracofrost » Tue Jul 03, 2007 3:13 pm

Er... what is a market cap?
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Postby TerraFrost » Tue Jul 03, 2007 6:12 pm

If you click the links, the Market Cap is pretty much equal to the "Shares Outstanding" multiplied by the number on the top right (eg. the stock price). Each outstanding share is basically one stock certificate.

There are 311.55 million "stock certificates" for Google. With a current stock price of $534.34, you get $166.473627000 billion as the market cap. At least as of this post.

According to Forbes, Larry Page and Sergey Brin (the founders of Google) are both worth about $16.6 billion ([1], [2]). Most of their current wealth is tied up in Google stock. Probably millions and millions of shares, each.

Personally, I think market cap is a somewhat meaningless number. If everyone tried to sell all 311.55 million shares of Google, all at once, it wouldn't be worth $166.47 billion. It'd be worth far less. Never mind the fact that such an action would reduce confidence in the stock, but it'd also oversaturate the market. As such, I believe it's also somewhat disingenuous to say that Larry Page and Sergey Brin are worth $16.6 billion, as well, but whatever.
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