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Politics : Formerly About Advanced Micro Devices
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longz
To: Tenchusatsu who wrote (1525313)2/25/2025 12:39:18 PM
From: i-node1 Recommendation  Read Replies (1) of 1570342
 
>> But that can't be! X is a privately-held company, which means it has no meaningful "market cap!"

A privately held company never has a market cap. Period:

"Market capitalization is a measure of a company's value based on the current market price of its publicly traded shares."
But private companies still have a valuation, which is the proper term for a close corporation. Values for close corporations can be determined the old-fashioned way, negotiation or by appraisal (less accurate but often necessary, since mostly, businesses are not for sale).

The difference is there is no market "herd mentality" associated with close corporations.

Today, markets are a tool for cashing out. When you, in your startup venture, hit a point that you're either needing to raise capital or you have hit the jackpot and going public, you'll find out about these alternatives.

So, there is no meaningful reference to market cap in any close corporation.
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