Why would a saver agree to pay more for a share of stock than physical capital held by a firm?
Both the share of stock and Physical capital are of the same proportional value.
Public Comments
- because they believe the price of the stock will go up or it pays a good dividend you don't measure value by "physical capital" - whatever that means
- because the stock price is low right now, if the stock market recover later you can earn a lot back
Powered by Yahoo! Answers