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0 pointspawelk6y ago0 comments

I agree with your overall point: it most likely does not matter when the values are close enough. However :)

There can be two companies with 100M market cap. Corp A has issued 10M shares @ 10 each, Corp B has 10B shares priced at 0.01

A +/-0.001 change in Corp A share price is just 0.01% and moves the market cap by +/-10k, so probably nothing significant. The same nominal change in Corp B amounts to 10%, or +/- 10M in the company value, which is quite a big deal.

Also I think there may be some money to be made in changes at the 7th decimal place with large enough volume of high frequency transactions.

0 comments

sudosysgen6y ago

Because of the way floating point numbers work, you'd get an accurate amount for both cases, as it's really the number of significant figures, not decimals.

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0 pointspawelk6y ago0 comments

I agree with your overall point: it most likely does not matter when the values are close enough. However :)

There can be two companies with 100M market cap. Corp A has issued 10M shares @ 10 each, Corp B has 10B shares priced at 0.01

Also I think there may be some money to be made in changes at the 7th decimal place with large enough volume of high frequency transactions.

0 comments

sudosysgen6y ago

Because of the way floating point numbers work, you'd get an accurate amount for both cases, as it's really the number of significant figures, not decimals.

j / k navigate · click thread line to collapse