The price of a stock does not determine how much it is actually worth. For example, Starbucks is trading at around $45 currently. Does it mean that a share of the business is really worth $45? One day the price can rise and the next day it can fall. Does it mean that the fundamentals of the business have changed drastically within the short span of a few days? The price of the stock does not equate to its value. The true worth of a stock is termed the “intrinsic value” and this value can be higher than, lower than or at the current stock price.
If we turn to the media, be it the newspapers or the television, the price of stocks are widely touted and very few talk about the ...
The price of a stock does not determine how much it is actually worth. For example, Starbucks is trading at around $45 currently. Does it mean that a share of the business is really worth $45? One day the price can rise and the next day it can fall. Does it mean that the fundamentals of the business have changed drastically within the short span of a few days? The price of the stock does not equate to its value. The true worth of a stock is termed the “intrinsic value” and this value can be higher than, lower than or at the current stock price.
If we turn to the media, be it the newspapers or the television, the price of stocks are widely touted and very few talk about the ...
