# Why is sum of shares different from total value (10% instead of 100%)?

I know the game is supposed to mimic the real market, about which I know almost nothing, but I don't understand how the value of a share is calculated (I mean why is it calculated the way it seems).

When your company total value is 1,206K (1 206 000 \$), your shares are at "12.06 \$", but there are not 100 000 shares like you could think, there are only 10 000 shares (10 blocks of 1000 shares).

So why shares represent only 10% of a company ? Why would you be the owner of a company after buying only 6% of it ? Is real market like this or is it just a thing in the game ?

UPDATE : the answer may be I'm just wrong in my calculations and the total of shares IS equal to the total value of a company which would make sense to me.

• Just to clarify- you're not at all interested in the forumla for calculating share price, but in the reason shares work as they do? Commented Nov 2, 2019 at 13:14
• Well, I suspect my calculation is wrong because of what I explain, that's why I'm asking for the calculation. But if the calculation is really total_value / 100 000, for sure I'd like to know how it is makes sense in the game :) Commented Nov 2, 2019 at 13:33

## 1 Answer

While I cannot say for sure what "total value" means in this context, I believe that is the company's net worth, equivalent to what one would earn by dissolving the company and selling all its assets.

"Share price" is the amount a share of the company is sold for in the stock market. It is determined by market forces within the investor population, which seeks growing, profitable companies.

The sum of the shares, also known as market value is the value of the company as seen by investors, which depends on how good an investment the company is viewed as. In this particular case, the company is viewed as a very unsafe investment, making buying a share a very risky proposition.

• Yeah, ok, so what about the question : "Why is sum of shares different from total value" ? Commented Nov 8, 2019 at 22:04
• Expanded answer to clarify. Commented Nov 8, 2019 at 22:18
• Ok, this would be a valid answer if you add article/wiki references of why is it legitimate that buying 6% of a company can give you full control (game reference or reality reference). Maybe it's a design choice in the game to have very undervaluaed shares, that's what I'd like to know. Commented Nov 10, 2019 at 8:37
• Explained with source. Commented Nov 10, 2019 at 14:06
• I understand the mechanism around lose of confidence which could lead to the share losing its value, but here I'm talking about a AAA rated company by "Martian Moody's", "Standard & Poor's on Mars" or any rating company operating on Mars (as you can see on the screen capture). The total value of the company (with debt soustracted 5 times) is 1,450,000 \$, if there are10,000 shares, I would expect a share to be around 145 and not 14,5 like it is in the game. Is my question more clear this way ? Commented Nov 10, 2019 at 16:53