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A stock may become more valuable due to increased investor confidence in the company's future growth prospects, often driven by strong earnings reports, successful product launches, or favorable market conditions. Additionally, positive news such as strategic partnerships, acquisitions, or improvements in management can enhance the perceived value. Furthermore, broader economic factors like low interest rates or a booming industry can also contribute to rising stock prices.

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2w ago

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What might be one reason why a stock becomes more vaulable over time?

One reason a stock may become more valuable over time is the company's consistent growth in earnings and revenue. As a company expands its operations, increases its market share, or innovates its products or services, investor confidence typically rises, leading to higher demand for its shares. Additionally, positive market sentiment and macroeconomic factors can further contribute to the stock's appreciation. Ultimately, increased profitability and strong fundamentals often drive up the stock's price in the long term.


What is the Risk of being a stockholder?

A stockholder owns part of a company. The price he paid for the stock has little bearing on its value, which depends on the value of the company or on the profits it makes. A stock may either increase in value, or decrease, and if a company becomes insolvent, the value of the stock could fall, even to zero.Some forms of stock (including preferred stock) may pay dividends, which can provide profits without having to sell the stock.


What is imp vol in option trading?

Implied volatility is the expected volatility of the underlying stock. The higher the implied volatility, the more the underlying stock is expected to move and thus the more expensive an option becomes due to increased extrinsic value.


What where two reason for poverty in the 1920s?

Stock market crash due to buying on margin and overextention of credit to buy consumer goods.


Why is Exxon Mobil stock going down with oil prices going up?

i think the main reason of that is falling of US dollar

Related Questions

What might be one reason a stock is more valuable?

If one unit of one stock costs more than one unit of another stock, that is utterly meaningless by itself. The stock is given some initial value - and this value is quite arbitrary.What matters much more is whether the stock goes up or down over time. The changes in price of a stock depend on supply and demand. If lots of people want to buy a certain stock, the price will go up. This, in turn, depends on the people's expectations, of how valuable the stock will be in the future.


What is one reason that a stock might be eliminated from the S and P 500?

The reason for a company's elimination might be its own downsizing (so it can no longer be considered a large-cap [capitalization] stock) or its acquisition by or merger with a different type of company not represented in the S and P.


How do you find a valuable stock?

roe


If a stock is taken off the stock exchange what becomes of the stock people own?

GARBAGE!


What is the stock split?

When a stock splits, one stock becomes two. People that own the stock can see the value of their stock for the company double.


What is stock splitting?

When a stock splits, one stock becomes two. People that own the stock can see the value of their stock for the company double.


What is the gray market for stocks?

The Gray Market usually refers to companies that for one reason or another are not listed companies on the stock market. The gray market for shares is an unregulated marketplace where company stocks are traded before the company becomes registered on the stock market.


What is the lowest possible value that a stock can reach?

The lowest possible value that a stock can reach is zero, meaning the stock becomes worthless.


What is the worst stock in the stock market?

the only valuable answer would be what days is it? it can change every day or for that matter in just a few hours.


What are some valuable things to invest in?

Stock MarketPropertiesPut money in bank to gain interest.


What is the disadvantage of buying stock?

You might lose money in the stock market.


What do you need to know about the stock market?

#1) The stock market is very risky.#2) Constant vigilance is required.#3) There is usually a transaction fee for every transaction.#4) Common stock is not as valuable as preferred stock.