Tag: Dividend-paying stocks

Inflation’s Impact on Stock Market

Inflation raises prices without increasing their value. Companies often inflate their financial numbers. The number of shares they issue goes up with the rate of inflation and increases with the added value the company creates. As a result, it becomes harder to determine a stock’s true value. Inflation is fought with short-term interest rates. These rates are higher because they make it expensive for money to be borrowed, removing excess capital from the market.…