Shares entitle their holder to a slice of a business. As shareholder of the issuing company, one acquires certain rights: to participate in the general meetings of the shareholders, to vote at such meetings influencing the decisions of the company, to benefit from their cut in the company's profit.

The market gives a value to such rights, which is expressed by the price investors are willing to pay in order to exercise them. Equity price of a company expected to experience significant profit growths within the next period will obviously increase, while equity price of a company that stagnates or records activity fall-downs will decrease. If a company goes bankrupt, the value of its shares crashes because the shareholders are the last to be indemnified, only after all the lenders have received their part.

The price is influenced by investors' perception on company's perspectives, formed following thorough analyses considering numerous factors: the estimated evolution of the economic environment, the dynamics of company's business sector, its capacity to keep or enhance its market share, the quality of the management, of the assets, etc.

An optimal decision (to invest, to sell the shares or not to take any action) requires consulting research material. In their turn, the analysts preparing the reports need to consult the financial results of the company, visit the production sites, discuss with the management and collect information on the market and the economic environment.

Based on all available information, they form an opinion which they communicate to the investors. It is important to keep in mind the fact that in the decision-making process, what matters is the future of the company and not its past achievements. Any of these factors may change in time, modifying as well the market's perception of the company, hence, the price of the share.

Obviously, the price of the share is also influenced by the investors' behaviour, their fear or their greed, which often determines them to make decisions that contradict the conclusions of their own analysis.