If anyone ever asks you what a stock is worth, the answer should be as simple as pulling up a current quote. The price point that intersects where the most ambitious buyer is willing to buy and the most impatient seller is willing to sell a certain security is a logical answer for the value of an investment. When it comes to a highly volatile stock, however, the answer changes rapidly, and typically not rationally.
It’s hard to find a wilder stock than GameStop (NYSE: GME) these days. The video game retailer has traded from as low as $2.57 to as high as $483 over the past year. On Thursday alone, when it hit that all-time high of $483, it also traded as low as $112.50. On the surface, this is just a number, and the valuation itself is incomplete without knowing how much of a particular company you are getting with the per-share price.