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jjeaff
1696 days ago
Because market cap is just the crazy value investors have attributed to the company. It doesn't mean the company is any bigger or smaller.
1 comments
chii
1696 days ago
But it means their cost of capital can be lower - for example, by issuing new shares to capture some of that high market cap. Then they can expand much easier than a competitor who cannot get such good rates for new share issuance.
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