What leads to change in share prices ?

Posted by on March 18th, 2008 at 05:15am

CDN Finance News wrote an interesting post today on
Here’s a quick excerpt
I know in these times it may not be the right question to ask. The share prices seem to be changing due to any news for instance, Bear Stearns had little to do with India but markets have crashed. Coming back to some fundamentals, we know share prices are equal to the discounted value of future cash flows. So, it is mainly two things- cashflows and discount rate. I came across this excellent speech from John Cochrane (of Chicago University). The main idea is: In the early days, the “expecte

Read the rest of this great post here

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