Sunday, April 10, 2016

Week 13 Reading Reflection

Being a finance major, this week's entrepreneurial venture valuation topic really interested me.  There were so many more ways to value a business than what I expected, and so many aspects that I was previously unaware of such as the rollup frenzy.  I have always wondered about how the market puts a value on a business, and I always assumed it was simply the sum of assets and profit potential, although there is so much more.  One thing that was lightly confusing to me was how some businesses can increase the price of their stocks so much and others keep it low.  I haven't been able to take most of my core finance classes yet, so I am mostly unaware about the financial aspects of business, involving stocks and bonds.  I would ask the author what system of ownership he would set up for his business, if he had one, and what kinds of stocks and businesses he likes to invest in.  What does he find valuable? I do not have any disagreements about the concepts in this chapter, as I know very little about the valuation of companies and it is all very new to me.

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