You are right the cost of paper is $0.0000001 per piece for each share, but the value of that piece of paper which is linked to the value of the company, it business, its market shares, its future potential is not. Everyday , when the market fluctuate, the value of that piece of pater fluctuate , but the cost of that piece of paper is fixed, always $0.0000001. So, those pieces of papers are assets for CPQ, it is worth much much more than just pieces of paper.CPQ issue 0.945 share of stock to swap for one share of DEC stock, which means CPQ use the values of its company to buy out DEC, not just so many tons of paper, those paper had values. If CPQ stock price hit $50 when he deal close, each share PQ issued to DEC holder it means $50 dollar CPQ takes out of its its company's value. If stock hit $30 at the time the deal is closed, it means $30. CPQ can sell those shares to the market and get money back immediately, so those shares are not just paper like you said.
If you think those shares are just paper, the value of which is just $0.0000001, then why don't you give all you dollars to me, the dollars are just piece of paper like the share. It will not take uncle SAM more than $0.02 to print each $100 bill, the issue is the value of the green, not the cost to make it !!!!!! |