Here is some enlightening story:<p>Tourist walks through some distant mountain village and meets the villager shouting &quot;My dog is for sale&quot;. So the tourist asks<p>&quot;How much for your dog?&quot;
&quot;$1 million&quot;, villager replies.<p>Tourist just sighs and continues his walk. Later the same day tourist is coming back. He meets the same villager, so he asks:<p>&quot;Did you sell your dog?&quot;
&quot;Yes,to my neighbor, for $1 million&quot;
&quot;Really? And he paid in cash?&quot;
&quot;No, he gave me two cats, but they are $500.000 each&quot;<p>The market cap valuation works in exactly the same way.