Difference between value and share price

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The difference between value and  share price  is an important question in the variable income market. Despite being practically synonymous in the Portuguese language, on the  stock exchange , the two words have very different meanings. Knowing the  difference between value and share price  is essential to make good choices and have attractive returns in the future. If you want to learn now how these concepts can make all the difference in your next purchase, this is the right place! In this article, we will cover: Difference between value and stock price How to know the price of a share How to analyze share price Technical Analysis x Fundamental Analysis: which is better? Stock market in 2018 – Tips to get started! 5 stocks to invest in 2018 If you have any questions, leave a comment at the bottom of the page. Good reading! Have you ever imagined living off the Stock Exchange? Read this other article to learn all about successful traders and how you can get there too.

Difference Between Value and Stock Price An image of buildings in black and white and, superimposed, an image of investment platform graphics, in reference to the value and price of shares When becoming a partner in a business, you need to evaluate more than just the quotes The difference between value cell phone number list and stock price is similar to the context of buying an object. At the time of acquisition, you pay a price, which in turn, may be higher or lower than the market average. While the  value of the action is what the product has to offer you , for example, it reduces the time to perform a task or has high durability. On the stock market, the difference between value and share price goes a little further. When you buy a share, you acquire a fraction of the issuing company. So  the price is what you pay for this slice . This is where the “buy low and sell high” philosophy comes from. At this point, you are only interested in the amount paid for the share, that is, whether it was a good time to buy. The  value is related to what the company has to offer  shareholders, for example,  attractive dividends  , having good growth projections or having quality management.



So, these are aspects more related to the company itself, which are fundamental in analyzes for investment in the medium and long term. That's why great investors like Warren Buffett often say that you need to invest in good companies and believe in the business. The price has a great influence on short-term operations, in which the investor seeks profitability when trading securities on the market. In the medium and long term, it is now necessary to pay attention to the benefits you can receive as a shareholder and partner in the company. Value is also related to equity . You've probably heard something like this: share X is trading below its book value. This means that the sum of all securities issued at this price provides an amount less than their  market value . Let's say that company X has 100,000 shares traded at R$10.00 and its equity value is R$3 million. The sum of all these assets would result in R$1 million. So, the shares are being traded three times below their book value, that is, they should cost at least R$30.00. In this context, it is necessary to analyze the aspects that led to this quote. If it is something temporary or if there are problems in the business such as debts, etc. In the next topics, we will show you how to carry out a complete assessment.