One of the core ideas in the fundamental school is that all stocks have value, and the value of a stock determines its price. So what is the basis for the value of a listed company's stock? How is the stock price speculated?
What is the basis for the value of a listed stock?
The basis for the value of a listed stock is the listed company. Its own assets, patent ownership of listed companies, various rights and interests of listed companies, etc. If the price of a land held heavily by a listed company increases, it will be reflected at the listed company level as an appreciation of its net assets, and the listed company is expected to further increase its stock price in the future. Stocks are securities issued by a joint-stock company to shareholders as shareholding certificates to raise funds. Each share represents the shareholder's ownership of a basic unit of the enterprise.
Generally, the value of stocks is divided into two parts, one is tangible assets and the other is intangible assets. Tangible assets are such as land, factories, etc., and intangible assets are such as patent rights. Value-added changes in either of these two factors will increase the value of individual stocks. But we must also note that many stocks have nothing to do with the value of the stock after they are listed.
On the one hand, stocks will receive a part of the premium after being listed, such as the scarcity of patents, good assets, etc.; on the other hand, the stock market is a reaction to market news, so market news will drive the rise of individual stocks. If this continues, we will find that many stocks have nothing to do with their own value, and their trends are completely related to the emotional preferences of investors, and this type of stocks are called theme stocks. Those closely related to their own value are called blue chip stocks or weight.