In the long run,stock prices tend to follow a company's profits.

Question

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Over time, a company's stock price is generally influenced by its earnings and growth prospects. If a company consistently increases its profits, it is likely that its stock price will also rise as investors value the company's ability to generate earnings. Conversely, if a company's profits decline, its stock price may also fall. This relationship is based on the fundamental principle that a stock's value is derived from the present value of its future earnings.

In the Long Run,stock Prices Tend to Follow a Company's