Suppose you want to buy the shares of some companies. Certainly you will be looking at many factors like dividends, risk profile, return etc. You will also look for short term and long term prospects of the firm as well. The above considerations of the investors translate into the demand of share and its prices. What do you think the share prices will reflect i.e. the long term prospect or short terms prospect of the firm? Even if one investor desire to hold the share for 2 years and other for 10 years will it change anything? Show with the help of a small calculation by taking any data of your choice.
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