BerkeleyYears

BerkeleyYears t1_iu31hwb wrote

The current share price is built on speculated growth not current growth. that is, people gamble on increased growth rates and assume this gamble will pay off in the future. This means the current share price is a prediction - a statement of what the investors think it can be. its not its current estimated value. This feature of the stock market is not a bug and is not evil per se. This mechanism allows for investments in the future - and this in turn can by itself allow for growth! assuming the company can leverage that money that people have gambled on it in a smart way and not syphon to be horded unused or used for things that don't improve growth.

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