Notes from Mark Mobius
In order to allow wealth to filter down fairly, we must have a capital market that enables the person on the street, who invests in stocks or mutual funds, to be treated as fairly and equally as the wealthiest person.
We often see stock prices rise as a result of both increased earnings prospects and perceptions of good corporate governance.
The more comfortable a company’s management makes investors feel about investing in them, the greater the supply of investors will seek to do so. The increased demand for shares contributes to higher share prices, which then results in a premium.