Shalom.
I would say the shares should represent an ownership interest in the income potential of the underlying company.
Not exactly. I would say that a share represents an ownership interest in the company assets, earnings and management. Although there are different "powers" to shares (or different kinds of shares), usually shares represent more than the interest in revenue.
Revenue is not income. Revenue is sales. It is only net income after cost of goods sold, expenses, interest, and taxes.
Assets are interesting, but the main thing shareholders wish to see is assets performing. No earnings is very bad for stock prices, which means that shareholders are very interested in assets which perform to produce earnings. It is often the case that a company which has poor earnings is bought by arbitrageurs and broken up into its component assets which are sold to other companies which believe they can make those assets perform.
Regards,
Jim http://www.ezez.com/
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