Question: Considerable research has been done on the relation between a firms earning stream and the market price for its stock. However, earnings explain just a

Considerable research has been done on the relation between a firm’s earning stream and the market price for its stock. However, earnings explain just a small fraction of the variation in market prices, suggesting that market participants look to a variety of other measures when valuing a firm.

Required:

List five items that market participants might consider when valuing a security. Would you consider these as lead indicators of performance?

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