By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Pristine20 on 05 August 2008
Edit Thread
NJ5 said:
Pristine20 said:

 

 That may be the key statement, if not why is HSBC ranked #1. Won't M$ be worth more than them? HSBC's "market value" is $180.81bln but their asset value is $2348.98 bln. The market value just seems to represent the worth of investing in the company at present not necessarily how much the company would cost because that would mean HSBC would cost less than M$.

Because HSBC also has huge liabilities.

Let me sum up:

Market cap is the stock market's estimate of a company's net worth. Net worth equals total assets minus total liabilities.

When you own a company's stock, you own their assets as well as their liabilities.

 

To be honest, I can barely figure out what liabilities are. It sounds like debt, employees that have to be paid or something as such. I just go by forbes rankings to know which company is bigger than which. I'm a biology major not business lol.

 



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler