Why is a stock price linked to a Company "going under?"? - how is market plus calculated
As the relationship between a company with a class is in trouble and the risk that the company (eg a bank) failed May on the basis of a low stock price? Share price of a company could financially healthy and low ... While unlikely. Moreover, the price of the shares of a company determined by the market .... not calculated on the basis of share prices on the secondary market.
How Is Market Plus Calculated Why Is A Stock Price Linked To A Company "going Under?"?
2 comments:
Imagine if the stock price as a thermometer, a barometer of
does not control the weather, but only displays the temperature.
The stock has no control over the company. Instead, the stock prices a reflection of how investors think the company will do so in the future. If you believe that the company is "Going Under" people have little or no value. If they believe will make the company more money in the future, rising stock prices.
The only interest in the company's current stock price, if you have more shares to the public issue, want to raise capital. If we consider that each secondary public offering means nothing.
The purchase price of the shares held for each investor in the secondary market (stock exchange) per s for their views on future changes in income. The near future should be strengthened.
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