Market Capitalization is Semantically Invalid
In this essay, I will debunk the concept of market capitalization. But first, let’s consider something else: the mass of a pile of bricks. Suppose that I have a pile of identical bricks. I want to know the total mass of the bricks for some reason. So, I measure the mass of one brick on a scale. The mass of one brick is M. I then count the bricks. The number of bricks is N. I then caculate the total mass of the bricks as M × N. M × N is meaningful. There are N units of size M, so N × M represents the total size of the units together.. The meaning of M × N is “the total mass of the bricks”. It is not just “M × N”. Note that I could use another method to get the same quantity. I could put each brick on a scale, measure its mass, and add up all of those numbers. If I had a really big scale, I could put all the bricks on the scale together, and measure the total mass directly. The meaning is not the method. The meaning is what the number represents. Now, let’s consider...