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If a company has 130,000 of capital, has 100,000 shares at £1 each. If I owned 1,000 shares, would I be safe to assume that I own £1,300 worth of shares?
I think thats right but I would like to include reasons why this might not be the case. Like what variables would there be that would affect this?
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If a company has 130,000 of capital and 100,000 shares that means that they issued those shares for $1.30/cents on average. It could also mean that they issued say 50,000 shares at .70 and 50,000 shares at 1.90. This would average out to $1.30, see?
And if the shares are issued for $1.30 each, it doesn’t mean your shares are worth $1300, because the value of shares falls and rises. There’s really not enough information to tell how much you purchased your shares in the secondary stock market.
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