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Does the value of a share price indicate the worth of a company?
On the Australian stock market for example, some companies have pretty big differences in share prices.
RIO TINTO $85.11
MACQ GROUP $40.60
CWLTH BANK $52.32
vs say some major telecommunications company like telstra that is about $2.82
Why would there be such a huge difference?
or is it because there are more shares available for sale? a company might for example only sell(make available) 100,000 shares vs 1,000,000 shares? ( the company that makes avaialble a lot of shares, the price will be lower?)
1 Answer
- MikeLv 61 decade agoFavorite Answer
The share price means nothing. Market capitalization (price per share times shares outstanding) is the main way to value a company.
