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slbrown

11/17/09 7:22 PM

#2873 RE: flaflyersfan #2870

Alright, you are obviously new at this, so I will enlighten you on a few things. First off I can see what you mean in regards these Pinksheet stocks and this why they are so dangerous, since the share price many times is determined on speculation in the early stages, but if they do not eventually have earnings they will go under. Same as if you did not have a job, you would eventually end up broke. Now to invest in real company on the larger exchanges almost all their PPS is determined by their value. I could go on till I was blue in the face, so all I ask is that you seek out a broker or read any book on investing and you will get what I mean. GLTY and just remember this as sales figures are released - watch NPHC's share price go up.
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ericsessions

11/17/09 7:25 PM

#2874 RE: flaflyersfan #2870

Dude, a firm's share price is simply the net present value of all expected future earnings. Different people have different expectations of future earnings, which is the reason people have different ideas of what the share price ought to be and whether they ought to buy or sell. Not that it matters for anything but I've got an MBA in finance so I am absolutely positive this is correct.
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austinstocktrader

11/17/09 10:46 PM

#2883 RE: flaflyersfan #2870

The Market Maker determines the price. The buyer and sellers create supply and demand but the market makers always determine the prices and trading ranges.