Stockholders’ equity section of the balance sheet
Companies can control the value of their stock through a variety of methods, such as maintaining high levels of earnings and profits, paying consistent dividends to shareholders, providing accurate financial reporting and transparency disclosure, implementing effective corporate governance practices, engaging in share repurchases or buybacks to reduce the outstanding shares on the market (reducing supply), etc.
Investors can use various methods to determine if a corporation is worth investing in – such as conducting research into the company’s fundamentals (financials/ratios), reading analyst reports and ratings from independent experts, considering risk factors associated with an investment (volatility)