qwestions and answers

The stock market exists so that a company can sell a portion of itself in order to reinvest in its business plan and grow larger than if it had stayed private. Companies believe they are making the most money possible with their resources or they would switch to a more profitable business model. A Railroad company may think that they can make more money if they lay fiber optic cables below their tracks but, it is more likely that they can maximize profits with their expertise and experience in the logistics industry. If you do not manage an old publicly traded company, then you can shy away from business models that seem antiquated. Casinos are a great example of businesses that do not lose money.(Oil refineries and luxury brands are not too shabby either.) An undervalued stock is a stock whose market cap is below what would be offered if the whole company was bought out and went private. (That description allows you to trade at any volume; if you simply say any stock that will go higher is undervalued, you are not taking into account what might happen if you buy a lot of shares and try to unload them all at once.) If you ever wake up and hear that a stock you own was bought for more than it was trading at the previous day, that is a very good day. Hope you have a good day!