Share price factors (US
stock price factors): The price of a
According to older and more recent studies, the price of a share depends in the long term on the company’s fundamentals, such as assets, profits, market position and future sales prospects. In the short term, however, the quotation of a share can be determined – under certain circumstances even very strongly – by non-rational expectations. This was confirmed worldwide from around 1990 onwards in the case of shares in companies of the so-called New Economy, primarily start-ups from the IT sector, as well as occasionally in the subprime crisis – see agiotage, stock bubble, astro-forecasting, behavioral finance, bubble, speculative, dotcom bubble,
Feedback loop. – For calculation models, see the ECB’s Monthly Bulletin of April 2005, pp. 56 f., Deutsche Bundesbank’s Monthly Bulletin of May 2013, pp. 42 f. (relationship between share prices and dividend payments; overviews; references).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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