19 lines
885 B
Markdown
19 lines
885 B
Markdown
# Stock
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A type of [security](security.md) which grants buyers access to [income-cashflows](income-cashflows.md) in a common economic enterprise.
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Stocks are valued by the [market](market.md) as a combination of three factors which inform price formation:
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1. Discounted future cash flows
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2. Momentum
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3. Public sentiment
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Stocks return [income-cashflows](income-cashflows.md) generated by the enterprise to shareholders via three processes:
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1. Dividend payments
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2. Stock buybacks
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3. Mergers and Acquisitions
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## References
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1. Fama, Eugene F. "Efficient capital markets: A review of theory and empirical work." The journal of Finance 25, no. 2 (1970): 383-417.
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1. Janeway, William H. Doing capitalism in the innovation economy: Markets, speculation and the state. Cambridge University Press, 2012.
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1. Lefevre, Edwin. 2004. Reminiscences of a Stock Operator. Vol. 175. John Wiley & Sons. |