Because the level of risk, stock prices will have a significant impact, but also consider the time value of money can overcome the short-term behavior of enterprises in the pursuit of profit in a certain extent. Because whether the current or expected future profits have important effects on stock prices, will. However, this view also has its disadvantages. First of all, to emphasize the interests of shareholders, the degree of attention and the interests of the enterprise main body is not enough, other relations, is not conducive to the activities of modern corporate finance, financial relations generated by various processing. Second, the stock price is the result of many factors, control and not all companies can finance target non controllable factors is unreasonable.Again, it is only applicable to listed companies, unlisted companies is in compliance with.
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