In equilibrium, a stock price should equal its "true" or intrinsic value.
Because of investors' perception (other reasons apply) a stock price in the short run may deviate from its intrinsic value.
Relative to managements actions to reduce intrinsic value. even if those decisions increase the stock price in the short run.
Because of investors' perception (other reasons apply) a stock price in the short run may deviate from its intrinsic value.
Relative to managements actions to reduce intrinsic value. even if those decisions increase the stock price in the short run.
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