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Author: cc1cc Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265744  
Subject: market cap Date: 1/11/2001 9:25 AM
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I'm a newbie and need some clarification. When market cap is calculated the stock price is part of the calculation. Who gets the money for the stock when it is sold? For example: if a stock price doubles and it is sold the person selling the stock makes money (capital gain) or loss (capital loss). The company gets the value of the stock at issuance and that's it...right? The only time martket cap comes into play is when it gets real low and then takeover becomes a problem. How does this work. Pretty fundamental question but thats where I am in understanding how this works.
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