I heard in the news that GM lost $32 billion in three months. How can a company lose $32 Billion and still be in business? According to MSNBC, GM has a market-capitalization of $18.5 Billion. The market-capitalization means the share price times the number of shares and is a key figure in the value of a publicly traded company.
GM lost nearly double the value of all it’s stock in three months.
If I lost almost double what my net worth is, do you think I’d still be here? No I’d be bankrupt, no house, no car, Nothing.
SO how can a company lose almost double it’s value and still be in business?
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