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are share price always reflective of the underlying performance of a company? provide arguments for and...

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Accounting

are share price always reflective of the underlyingperformance of a company? provide arguments for and against. at theaggregate level, does the stock market always reflect theunderlying performance of all firms? provide examples ifpossible.

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Before answering the question please note that how prices of a companys shares are determined in the stock market It is based of the demand and supply forces of the market If the market demand of the share are higher then the supply of the shares the market share price will rise or vice versa Now the question arises what drives the market demand of a shareIt is the investors belief that the company will do good in future as    See Answer
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