We need to discuss things within the company and things in the broader economy that have an impact on stock prices. We also need to consider what determines the value of the company on the financial statements, especially on the balance sheet. Remember that assets on the balance sheet are shown at the historical price rather than the current market value. Would we expect the market price (the current market value of the company's stock) to be greater than or less than the historical cost? Why? Lastly we need to reflect on actions of company executives that create the most value for stockholders and other stakeholders.