As I understand it, when people buy a share of stock, the price goes up. When people sell it, the price goes down. So what does this have to do with the company itself that this stock represents? For example, if a bunch of people wanted to make Apple’s stock price go down, they could just agree to sell their shares. So what does the actual stock price have to do with the company?
In: 5
That’s what’s called company valuation
Usually it’s a sum of all its assets plus a few years of revenue
It’s a measure of how much your money will yield dividends with the current company performance
Stock goes down if the company can’t pay dividends.
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