Quote:
Originally Posted by johnnyl321
I'm still confused as to why stocks such as google trades for almost $300 a share and automakers so low. Automakers actually produce a tangible product, Google produces online advertising space basically.
Can someone educate me?
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LIke everything else in sales the price is related to one thing alone...what someone ( the buyer ) is willing to pay for it.
Your house is only 'worth' what the buyer will pay for it.
Your car is only 'worthwhile' to you when you saw the value of giving up your money for it.
Google's stock is 'worth' what the last buyer wanted to pay for it.
Gm's stock is 'worth' what the last buyer wanted to pay for it.
Bread at $22 / loaf is not 'worth' it....unless you're starving and you've got a pocketful of $20 bills.
That is not the actual value of GM, it's assets less liabilities plus goodwill. Actually GM could have a positive value
or if it's bills and liabilities are greater than it's assets and goodwill then the actual value might be negative. That's an entirely different discussion though.