Pitfalls of mining finance : "investigate before you invest" : how shall I investigate? . ct to find the price of shares,to get an equal valuation for the property—and vice versa. There is no difference between a company capitalizedfor 100,000 shares selling its stock at 50 cents a share,and one capitalized for 1,000,000 shares, and selling at 5cents a share. In both instances the property would havea market value of $50,000. The accompanying tables will help investors to arriveat the essential basis of valuation in forming their judgmentregarding investments. No. of Par Capitali- Market price
Pitfalls of mining finance : "investigate before you invest" : how shall I investigate? . ct to find the price of shares,to get an equal valuation for the property—and vice versa. There is no difference between a company capitalizedfor 100,000 shares selling its stock at 50 cents a share,and one capitalized for 1,000,000 shares, and selling at 5cents a share. In both instances the property would havea market value of $50,000. The accompanying tables will help investors to arriveat the essential basis of valuation in forming their judgmentregarding investments. No. of Par Capitali- Market price Value placed Shares. value. zation. of stock. on property. 10,000 $100 $1,000,000 $20 $100,000 20,000 50 1,000,000 10 100,000 100,000 10 1,000,000 2 100,000 200,000 5 1,000,000 1 100,000 1,000,000 1 1,000,000 20c 100,000 10,000,000 10c 1,000,000 2c 100,000 20,000,000 5c 1,000,000 lc 100,000 100,000,000 lc 1,000,000 $2 per 1,000 100,000 COLLECTION. The tables appearing on pages 52 and 53 have been inadvert-ently transposed. That on page 53 should have been on page 52,and vice PITFALLS OF MINING FINANCE. 53 When half the capital stock is placed in the treasury ahigher market price per share brings the same valuationfor the property. No. of Par Capitali- Market price Value placed Shares. value. zation. of stock. on property. 10,000 $100 $1,000,000 $10 $100,000 20,000 50 1,000,000 5 100,000 100,000 10 1,000,000 1 100,000 200,000 5 1,000,000 50c 100,000 1,000,000 1 1,000,000 10c 100,000 10,000,000 10c 1,000,000 lc 100,000 20,000,000 5c 1,000,000 $5 per 1,000 100,000 100,000,000 lc 1,000,000 $1 per 1,000 100,000 In ascertaining whether or not a fair valuation isplaced upon the proposition, we must take into considera-tion many things. After arriving at the actual market val-uation, arbitrarily placed upon it by the promoter, we mustconsider the assets, and possibilities of the proposition. The assets of a mining company can comprise manythings. There is the property, and t
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