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/biz/ - Business & Finance

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>> No.56371202 [View]
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56371202

>>56370668
in a simplistic way, companies are valued based on how much money they make "Earnings", multiplied by the amount investors are willing to pay for those profits. the confusion happens because investors are pricing stocks for FUTURE profits, which may or may not be realized. so the companies are absolutely backed by potential+real profits

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