The Stock- to- Flow model is a quantitative system used to prognosticate the price of a stock. The model works by assuming that a stock’s price is commensurable to its inflow through an imaginary request.
The model assumes that all deals are original, so if you buy 1 share of stock, you also vend 1 share ofstock.However, you also buy 1 share of stock, If you vend 1 share of stock.
This means that all deals are cool and there are no one-off advantages or incommodities to different likes of investors. This makes it easier to compare two investors using this system, who may have nonidentical criteria for investing in kinfolks.
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