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

offworld-trading-company

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 ?

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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.

Best 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.