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All the stock price of a company is, by definition, is "The NET PRESENT VALUE of all expected future cash flows from dividends of that company" (In Finance, capital gains technically don't account for the stock's value).
With that being said, anytime the value of a stock lowers, all that is lowering is the EXPECTED value that the stock will yield in the future.
In accounting, a stock is written on the books at par, and any excess in Stock price is booked as "in excess of par". The value is neglible to the company, because all of the value it loses is "equity in excess of par", which is just added market value to the book value of a stock.
Generally, in public markets, a company's money is already made once the stock is sold to investors. All other changes of value goes between the trades of investors, because the stocks are now in the secondary markets, where investors seek to capitalize on the stock's NPV.
Sent from my SAMSUNG-SM-G930A using Tapatalk
With that being said, anytime the value of a stock lowers, all that is lowering is the EXPECTED value that the stock will yield in the future.
In accounting, a stock is written on the books at par, and any excess in Stock price is booked as "in excess of par". The value is neglible to the company, because all of the value it loses is "equity in excess of par", which is just added market value to the book value of a stock.
Generally, in public markets, a company's money is already made once the stock is sold to investors. All other changes of value goes between the trades of investors, because the stocks are now in the secondary markets, where investors seek to capitalize on the stock's NPV.
Sent from my SAMSUNG-SM-G930A using Tapatalk
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