POSTED BY May 28, 2011 12:25 am ONE COMMENTON
Though I have not read much before asking your this question. Hope you understand
I have one query regarding value of stock. I am trying to understand how the value of any stock get increase(and not decrease)?
suppose, there is one company called ABC and there are 50 shareholder of that company who bought it’s share in IPO at Rs. 100 each. Now, if all of these are very good investors and they believe in long term investment in stock market. They all believe that company will do lot of progress in next 10 years so we will hold the stock for 10 years. And none of the person ever sold its stock. So if there was NOT a SINGLE transaction of buy or sell for that stock there is no question of someone asking that stock for a price more than its current value OR lesser value.
In the above case, how the value of the stock will get increase?