Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?
Generally speaking, the stock market is driven by supply and demand, much like any market. When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is ...
Arguably the most important questions an investor must ask is: “How much is the stock actually worth?” There are many methods to answer this question. One popular method is the Gordon Growth Model.