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3 Ways Investor Expect to Profit through Stocks

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Investors in a stock expect to profit in at least one of three possible ways:
a. From free cash flow generated by the underlying business, which will eventually be reflected in a higher share price or distributed as dividends.
b. From an increase in the multiple that investors are willing to pay for the underlying business as reflected in a higher share price.
c. Or by narrowing of the gap between share price and underlying business value.
Tags: stocks