
At any given point in time, share prices tend to represent the sum of expectations about its value from all investors. A share price represents a balance between the hopes and aspirations for profit of some and the fear of loss from others. Generally speaking, investors tend to be willing to pay more for shares with expectations of stable and/or growing income streams over those where income may be more variable or where the company’s future direction is uncertain... find out more in our Company Fundamentals guide.
