Suppose a share represents $75 in cash plus a proportionate interest in fixed assets. If the share is sold for $105, then $75 may be treated as exchange for the $75 cash component and the remaining $30 as price for the fixed assets.
This gives a simple way to see why the total price can be higher than the cash component when real assets are also represented.
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Equity Investment: When Are Shares Tradable?
Suppose a share represents $75 in cash plus a proportionate interest in fixed assets. If the share is sold for $105, then $75 may be treated as exchange for the $75 cash component and the remaining $30 as price for the fixed assets.
This gives a simple way to see why the total price can be higher than the cash component when real assets are also represented.