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Is it correct to say that the value of the shares represents “the sum of the expected future results of the company during a certain period"?

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Question added by Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date Posted: 2018/11/21
Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

I do believe that, the short answer is "no", as the value of shares are represents the present value of company's equity, not the future one.

Abid Ali
by Abid Ali , Accountant , STC

A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company.

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