Im having trouble understanding what determines the value of a stock. If it is determined by the finances of a company in a literal way. My understanding was that its public perception of the company that effects the share price after the initial public offering. Like they release all the total shares of the company at the public offering, and then after it is simply the public trading in the market and determining the share price value.
The reason this question has come up is in regards to a dividend payment. Is it my share of the profits (free money) or are they taking away from their share price to pay for the dividend? I didnt know companies had the power to do that other than through a stock split. So Im deeply confused.
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