Shareholder return - Capital gains
4 important questions on Shareholder return - Capital gains
What is for young growth companies often the only way to offer positive shareholder return to its investors? And why?
On what are share prices based on? Why are share prices of growth companies so volatile?
Because the share price is based on future (expected) earnings rather than an actually existing (and tested) dividend policy.
Market expectations and hence the share price can change fast.
- Competitive dynamics
- A change in the economic outlook
- Regulatory adjustments that could affect a whole sector or industry
- Changes in management confidence and perceived execution challenges
- Surprises in the company's performance vs earlier market expectations
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
As shares trade, how are share prices constantly adjusted?
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding