ALL shares on the stock exchange are traded at a price people THINK will increase in future
TODAYS value of a company and therefore its share price has nothing to do with it. TODAYS price is history.
How does Trading Work? I can say you that take a look at this site ( http://forexsignal.kyma.info ) may be it can help you. It 's one of the best course about trading. It seems like Trading is almost totally based on Macro-economics. It also strikes me that since there are not nearly as many currencies as there are stocks/bonds/derivatives etc etc, there must be a large number of market players in each currency bracket. So logically, currencies must be very liquid true? Also, what is the risk of Currency trading, high or low? When I read the business section every day I notice that the Canadian loonie moves hardly a tenth of a cent on a regular basis (in comparison to the US dollar). So it seems like theres very little room for growth in currencies unless you leverage. On that note, whats the maximum leverage permitted for forex trading. I know in stocks its x2, and in derivatives its x10. Anyway the only way to know how to start a profitable buisness is by following some methods like the one that I suggested.
There are more people using facebook
When Facebook became public it was trading at almost $40 a share and people were going bonkers asserting that trading at 100x earnings would never be sustained. So why is Facebook now trading at $60 a share? What's the hype?
As far as face books intrinsic value goes, analysts have suggested a figure around the $10 region. So why is it trading so high?
