Value is a better measure for investors while price matters more to traders
We, the so called “value investors” often find ourselves trying to resolve the differences between a stock’s value and its price. If you have spent any time investing in the stock market, you will know that value and price are two different measures arrived at by different means but most of the time we might confuse and mixing up “price as value”.
While fundamental factors influence stock prices over the long term, supply and demand rule stock prices in the short term. More buyers than sellers can mean the stock’s price will rise, while more sellers than buyers indicate that the price will fall.
Whether there are more buyers or sellers on any day depends on many factors, such as:
1) Overall market trends
2) News, good or bad
3) Economy / Geopolitical Risk
4) Confidence or lack of it in the