REAL VALUE

18 April 2017 By PDSNET

The real value of a share only exists as an opinion. Everyone has an opinion about whether a share is over- or under-priced. In relation to what? In relation to their perception of its real value. Typically, the market price of a share oscillates from being above to being below its real value, but that of course, depends on exactly what you think its real value is. Clearly if a share is trading below what you think its real value is, you will believe it to be cheap, a bargain - and vice versa.



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