what is the ultimate value of a stock based on? and Stock Photograph

what is the ultimate value of a stock based on?

I know that buying can cause stock/shares to rise in value and selling can cause it to lose value, but what is the ultimate value of stock determined by? Quarterly earnings of the company?

In moviestocks, like company stocks, buying can cause value to increase and selling decrease but the ultimate value of the stock is determined by box office earnings when it's released. Do publicly traded company stocks work like that too?

Thanks.


Stock best answer:

Answer by Jim
When buying a stock, you are buying anticipated future earnings, and hopefully increasing earnings.

Also, remember that for each stock sale, someone is on the buying end of that transaction.

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