Professor Elam

I have mentioned in class the importance of measuring market captilaizaiton. You will recall this is the price per share times the number of shares outstanding.  Right now that is $11.6 B  for Lehman.  Lehman was asking $6B for a 25% share from the Korean Group. But wait, 25% of $11.69 B is about $3B, whoops, they are paying twice too much.  Cli  ck and read that negotiations are hled up, seems price is a problem. The market share price of Lehman is dropping so fast that Lehman is having a hard time staying with a price. And so Lehman is being priced down as its 'asset' values fall.