11-16-2014, 10:05 AM
Joey, I went back and re-read it. My biggest nitpick was the length of the article. I was/am afraid that perhaps your message got lost amidst the banter you used expounding on your points. It may be my own biases that caused me to lose focus as I read.
Technically, and maybe it's really semantics here, "The market cap is pretty much the total value of the company" is not really a good description if you want to use the word 'value' in other contexts. You went on to explain that market capitalization is the product of the current price and the shares outstanding, which is true, but to characterize it as the value of the company may lead to some confusion. Otherwise, how can a company be under, fairly or over valued?
Overall, I think you did a solid job. It's difficult to introduce such a broad topic to a neophyte.
Technically, and maybe it's really semantics here, "The market cap is pretty much the total value of the company" is not really a good description if you want to use the word 'value' in other contexts. You went on to explain that market capitalization is the product of the current price and the shares outstanding, which is true, but to characterize it as the value of the company may lead to some confusion. Otherwise, how can a company be under, fairly or over valued?
Overall, I think you did a solid job. It's difficult to introduce such a broad topic to a neophyte.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan