Investors buy common shares mainly because they expect the share price to increase. Over an extended period, what causes share prices to rise is the companies’ increased earning power and ability to pay higher dividends out of these increasing earnings. However, many other factors also impact share prices.
Prices of equity shares move continuously during trading hours. Investors would differ as their valuations of share prices are based on different time horizons, different economic outlooks, and different vested interests.
Information that Affects Share Price
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