As the title says, i don’t understand why a company’s profits matter to its stock price. Obviously, a share is a % ownership of the company, so that would suggest that one should care if the company makes or loses money, but since shareholders (talking about the vast majority of shareholders who own a very minute portion of the company) see none of the profits not sustain any of the losses of the company, save for dividends, which aren’t guaranteed even if the company makes money. In my opinion, stocks are just commodities, and it is the populations belief that the profitability of the company matters is what makes it matter at all. Am i right? If I’m wrong what am i missing?
Submitted July 09, 2018 at 01:52PM by OwlEyes17 https://ift.tt/2uqiOxR
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