The Myth Of The Earnings Yield

The Myth of the Earnings contribute The Myth of the Earnings carry Essay written by Sam Vaknin Sam Vaknins Psychology, Philosophy, economic science and Foreign Affairs Web Sites A very fragile minority of firms distribute dividends. This truism has revolutionary implications. In the absence seizure of dividends, the foundation of most - if not all - of the financial theories we employ in piece to determine the value of sh ares, is falsified.

These theories rely on a few implicit and explicit assumptions: (a) That the (fundamental) value of a share is cl osely correlated (or even equal to) its commercialise (stock exchange or transaction) price (b) That price movements (and volatility) are in general random, though correlated to the (fundamental) value of the share (will always have sex with to that value in the long term) (c) That this fundamental value responds to and reflects new-fangled reading efficiently (old information is wide of the marky incorporated in it) Investors are supposed to d...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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