Quote:
Originally Posted by Gazza77
Like houses, people are worried their shares are worth less than they paid for them, or less than they used to be. Unless you planned to sell them, or the company goes into liquidation or is nationalised (banks  ) then it is only a paper loss rather than a real one. Prices can and do go up as well as down... |
My point is not about the shares - its the link that the shares have to the business AFTER the capital has been raised by the event of the share issue.
ie, how does the share price of a bank dropping mean that its actually worth less, there is no less cash in the vaults etc....