> The value of the stock is relative to the performance of the company, not the amount of fools available to sell to.
A company might be destined to make twice their profits, yet if nobody believes they could, nobody will buy their stocks, leaving stock price the same. One might think, the stock price would certainly increase when the company realizes the profits, but it’s not the case either. The market could think that it was a one off event and the company wouldn’t continue growing. Therefore, nobody buys the stock.
A company might be destined to make twice their profits, yet if nobody believes they could, nobody will buy their stocks, leaving stock price the same. One might think, the stock price would certainly increase when the company realizes the profits, but it’s not the case either. The market could think that it was a one off event and the company wouldn’t continue growing. Therefore, nobody buys the stock.