RE My two pence16 Apr 2019 19:36
A share of common stock represents ownership in a company. It entitles the holder to a claim on assets as well as a fraction of the profits that the company generates. Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents ownership......
In the stock market, investors are constantly trying to assess the profit that will be left over for shareholders. This is why stock prices fluctuate. The outlook for business conditions is always changing, and so are the future earnings of a company.
Assessing the value of a company is complex. There are so many variables involved that short-term price movements appear to be random (academics call this the random walk theory); however, over the long term, a company is supposed to be worth the present value of the profits it will make. In the short term, a company can survive without profits because of the expectations of future earnings......Our time is fast approaching just a little more patience all.......