Money and Banking: What Everyone Should Know Season 1 Episode 22 Stock Price Fundamentals
- November 1, 2023
- 31 min
What determines prices in the stock market? Approach this question first through the "market fundamentals" model of stock prices, a formula linking a firm's capital, profits, and dividends to its share price. Contrast this with the "capital asset pricing model," which evaluates the rate of return an investor requires.