calm before the big ann, page-25

Bas:

The market cap is the how much the market judges the value of the company: number of shares x share price. Saying "if there were twice as many shares that the market cap would be twice as much" doesn't mean much - as assuming the market judged the company was worth the same amount the share price would halve in response to their being twice as many shares.

To everyone who complains about a company having too many shares on issue, assuming a hypothetical company is worth $100m how is:

Shares on issue: 1 billion
Share price: $0.10

any different from:

Shares on issue: 100 million
Share price: $1.00

"depends how many are held by top 20 and whats left to trade on market ="

Investors decide to invest x amount of money, not x number of shares. If a top investor wants to buy 1% of the company then it costs $1m no matter how many shares are on issue. There's still $99m worth of shares left in either case.

Anyone?