As I explain, the 19th c. idea of stock was
1) it represents concrete stuff
2) it pays dividends.
Musk doesn't have a trillion in cash. His holdings are valued at that level by the hopes of market participants. The old idea didn't account for intangibles, but it demanded profits. Not all bad...
T.J. Stiles
Elon Musk is a trillionaire. How could this happen?
Here's a gift link to my WSJ piece on how a longstanding idea of corporations & the stock market broke, making giant corporations & super-wealth possible. You Henry Varnum Poor fans are gonna plotz.
Some background...
www.wsj.com/finance/gild...
T.J. Stiles
The 19th century titans did more than build railroads. They paved the way for the reinvention of the stock market—and the creation of runaway wealth.
