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No? Plenty of people buy stocks based on the financial performance of the company, and given that the majority of capital invested in stocks are large instituti
by xkjkls 7y ago
No? Plenty of people buy stocks based on the financial performance of the company, and given that the majority of capital invested in stocks are large institutional investors, the vast majority of money invested in stocks are from people who care about financial performance
- mrtksn 7y agoand plenty of people but stocks on their horoscope
- xkjkls 7y agoNot a meaningful amount of capital though.
- mrtksn 7y agoThe idea here is that stock prices are determined by the people who want to pay for that stock. It's not a function of the company's operational success. What you are saying is circular reasoning, you essentially say that company performance matter because many people think that is should matter. There's no causality relationship here, essentially people think that matters because other people thing that matters.
- xkjkls 7y agoNo. Businesses are eventually valued by the capital they can return. Otherwise numbers are all meaningless