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Pastimes : How to best deal with KOOKS at this web site
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To: Gottfried who wrote (228)4/25/1997 4:54:00 AM
From: Iceberg   of 1894
 
>It is entirely conceivable that another society, more evolved than ours, might not care about earnings growth. They might still have a stock market - based on social impact. The more trees a company plants, the higher their stock. The more they do for working mothers, the higher their stock.

Gottfried,

It's not too difficult to imagine another society more evolved than ours...especially in regards to the importance attached to earnings growth.

Just what is it about any particular stock that would make people bid up the price on it? Is that what you are asking? If so, it's a good question. Earnings growth probably isn't the answer. It more likely has to do with expectations.

To use your example, people desire $20 bills not so much for thier growth rates (time value of money), but for the future use of $20 bills on a more practical level ...exchanging money for goods or services.

Ice
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