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It’s based on investors’ view of the future of the company and economy. It could be that investors believe the company can grow into something large and profit
by randomsearch 7y ago
It’s based on investors’ view of the future of the company and economy.
It could be that investors believe the company can grow into something large and profitable.
It could be that investors believe they will be able to sell their shares to someone else for more.
There is no law that says these beliefs have to be rational.