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The stock price is driven by what investors think the company is worth. For what you describe to work, investors would need to calculate that the investment Int
by euyyn 9y ago
The stock price is driven by what investors think the company is worth. For what you describe to work, investors would need to calculate that the investment Intel made here was profitable (via the sales made, for example), thus adding value to the company. At which point you couldn't really see it as a "game", but a good investment that was now ended.
- petra 9y agoThat's only one parts of what deteremines the stocks' worth. There's also predictions of future growth.
- euyyn 9y agoBut it's hard to see cancelling a product as a cause of growth.
- georgeecollins 9y agoCanceling an unsuccessful project can trigger a growth in profits.
- euyyn 9y agoDon't lose sight of the forest for the trees: OP's scenario is a strategy in which the project's start (with investment) causes a raise in valuation, and its premature cancellation a smaller decrease in valuation.