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Forum nameGeneral Discussion
Topic subjectThe price at any time reflects all available information...
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=12721652&mesg_id=12721753
12721753, The price at any time reflects all available information...
Posted by PimpTrickGangstaClik, Sun Feb-08-15 09:13 PM
The price right now represents what people think today about the future of the company.

With your Apple example, all investors (maybe I should say most) know all that stuff.
They read the reports, they looked at financial statements, announcements, analyst forecasts, etc. Everything you have access to has already been scoured over.
And based on all that information, the market has determined the value of the company is $118.

So you would trade at that price for two reasons.
1). If you think the market is wrong in their interpretation of that information. And keep in mind who is participating in these markets.
There are highly skilled institutions with resources devoted to finding mispriced companies.

2). You have information that nobody else has.


>
>And tons of companies don't offer dividends
>
The assumption is that these companies eventually will pay dividends. If they will never, ever, ever, ever pay a dividend, then the price will be zero

For example, Google has never paid a dividend in their history. But they will eventually when it becomes a better option to payout profits rather than reinvest back into the company