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Email Questions
This is an email I recieved the other day, and I am sure our community can provide some good feedback here. Thanks in advance. -Blain
"Hey Blain,
I just have a few quick questions to ask you:
People always tell me that when there is an anticipated increase in demand
for a specific company – that this anticipation will already be built into
the value of the share. I don’t understand how this happens. For example,
say Stock XYZ is going to report earnings, if there are 50 investors that
think Stock XYZ is going to go up, they will buy that company’s shares –
hoping they are correct on their assumption. This will increase the demand
for that stock – which should make the stock increase. However, how will
that anticipation be built into the share price? (do analysts predictions
have anything to do with it?)
Please let me know – as I have always wondered about this.
Also, besides financial statements, news about a company, its growth
potential, analysts expectations…what else affects the share price of a
certain company?
Thanks a lot for your help.
If it is more convenient for me to contact you with questions by another
means, just let me know.
Cheers,
Derek"
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