slowmo said:
A company is only worth what someone will pay for their stock, you can have all the assests under the sun but if your assets barely cover the cost of your lending then your a substantial risk. This risk is proving to be a serious concern now to an extent the markets are rapidly losing faith in Sony as a investment. |
I see. Thanks. I read the bolded bit to be "the cost of your borrowing" and assumed you made a typing error.
In other words I can have a bar of gold that is worth 10K but if I was in a desperate situation and potential buyers knew that I was in a desperate situation for cash they would offer and I would accept a lot less for it. Not quite a full analogy but that is almost the gist of it.