A COMPANY’S STOCK PRICE RISES IN VALUE OVER A YEAR. WHY?

The company is growing… adding customers, staff, products, services, competencies, and equipment? Maybe.

The company has become more profitable… better cash flow, more revenue, less waste? Maybe.

The company has had a steady, or increased, payments of interest on its bonds or dividends on its stocks? Maybe.

The company has used its own cash to buy back it’s stock from the stock market, making their available stock more scarce? Maybe.

The company’s competition has been reduced or the company has developed a competitive advantage? Maybe.

The entire economy is improving, lifting many company’s stock prices? Maybe.

The business sector of the company, which is represented by the stock, is improving? Maybe.

The federal government and/or state governments have given this type of business, tax breaks or tax incentives. Maybe.

Other people are trying to buy the same stock and are willing to pay a higher price than when you had originally purchased this stock. YES, YES, A THOUSAND TIMES YES!

Charles Tadros, M.D.

August 2, 2021

Saint Louis, Missouri

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