Is there a relationship?....share price?

Question

is it true that share price is related to firm performance, i.e. the better a firm is performing the higher its share price

if so wheres the connection

many thanks

Answer 1

The is only one factor that determines the price of a stock and that is "buyers",    If there are no buyers, the price of the stock will go no where, when buyers come in, the price of the stock will rise.

Many institutional investors do study the fundamentals of companies and look for those with good statistics, since this is excellent justification for recommending the stock or buying if for their portfolios.

A stock with the better fundamentals stands a better chance of performing as well as or exceeding market performance.

Stocks that pay dividends are also attractive to many types of investors as bringing them another source of income.

So with analysis recommendations, dividends, and sound fundamentals many buyers are drawn to the stock, thus with buyers coming in, the price of the stock will rise.

There are many companies out there with great fundamentals but have no buyers interest, thus the price of the stock is dormant or dropping.

Answer 2

BRK-A (NYSE) is at $116,750.00/ share, and it is down 30% over the last year. High prices don't mean a thing.