Question about investing. Total Assets, liabilities etc.?
Im kind of new to investing and i have a few questions.
I’m looking at the balance sheet of GM (general motors http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=GM&lstStatement=Balance&stmtView=Ann)
And it says they have 148883 million in assets with 185977 in liabilities. Can someone explain to me what liabilities are exactly? And if you divide the assets of company by the number of shares isnt that how much each share has in value if the company liquidated? If not how do you find the value of a stock in assets? I divided the assets by 610 million shares and got over 180 dollars per share in assets… If that is right wouldnt each share get 180 dollars if the company went bankrupt and sold all its assets? Someone please explain this to me because obviously that cant be true with a stock price of $3.85
Liabilities – Amounts you owe.
You wouldnt get $180/share because they have to use those assets to pay their liabilities. The MARKET stock price does not reflect the balance sheet stock price. The Market stock price is more affected by anticipated worth and investor emotion.
