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> There's no intrinsic reason for earnings to be directly related to stock price. You are buying a share in an income stream! You are using your money to buy m
by fennecfoxen 5y ago
> There's no intrinsic reason for earnings to be directly related to stock price.
You are buying a share in an income stream! You are using your money to buy money! If there is no intrinsic reason for this to have a price that is measured in money, where exactly do you think a price measured in money is appropriate?
- staticman2 5y agoCorporations are not required to share their income stream with investors, either directly through dividends or indirectly through buybacks. The "income stream" concept is only theoretical.
- superdimwit 5y agoIf they don't, and can't demonstrate that they're doing something else useful with that money, investors get angry and fire the board.