If a person owns $2B worth of stock in a company that only has $300M cash on hand. And that person decides to sell all their stock. Where does the rest of the money come from? I can’t imagine people continuing to buy shares that are put on the market so the money has to come from someplace.
In: Economics
Company’s total valuation includes more than just cash on hand.
If someone suddenly tried to sell all their shares, you would need to have buyers for all of them, and in parallel the stock price would plummet. Neither of which affects the company’s cash on hand.
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