Expert: Paul Ling - 2/3/2007

Question
Hello,

I just want to know who changes the stock value in stock market?I understand the value of stock depends on many factors such as earnings etc but it must have somebody to decide the value of stock, isn't it?

Regards
Kev

Answer
Yes, you are right . Chinese say" Every things has it's price". however How to estimate is the problem. Because of one's look for his everything (I mean priceless). On the other hands, next one look it was useless for him ( I mean priceness.
Back to your question. In investment market all the thing can be pricing . e.g. News of company, return of the year.
However most belive that NPV were fair value. It meaning that all the future happen can be discount to the present value. Therefor some old and present expected income was discount to NPV.
Might you ask the next question of how to value the future.
It was common question to the investor, They was looking forward the index factor , interest rate , Import and export etc.... e.g.. PPI ,FOMC, inflation....
In Marco economic, we can expect some level of short term need trend e.g.. interest and return of company ... therefor fund manager can made their own investment deciding . e.g. they might expect near short term future were shortage of Oil supple or Y2K problem etc... thought are invest for future .Because of all the old thing were discounted into NPV now. However further were no one know. So the price was bid and ask a market. For example. If you expect USD will go weak , why no you don't sale right now and buy the other currency. In stock market are same more or less.


good luck

How you expect future , It was no "one single answers " that is all you want to kwon.