It’s amazing that just one resignation can send the world into a panic. The better thing here is to just understand what that panic was about. When Steve Jobs told the world that he would no longer be running Apple there was a panic and it sent the stock on a little bit of a ride. How can one guy affect the stock so much? It’s a simple idea and one that is really based on reaction.
Stock isn’t a reflection of how well a company is doing, at least it’s meant to me that. What the stock price really is has to do with the faith and trust of the public in that product. How much is a share of Apple Stock worth if Steve Jobs is running things? With all the latest innovations it’s probably worth a lot. How much faith do you have in Apple knowing that they are not going to be running the show with the genius that is Steve Jobs? Probably not nearly as much. So when the shares were at 318 dollars it was a reflection of great trust by the American people. When the stock dipped it showed a panic on the part of the people.
Take a look at Bank of America. The company was thought to be in real trouble and the stock was on it’s way out the door when financial mogul Warren Buffet decided it was a good idea to buy stock in the company. From there the stock rose as buyers figure that if Warren Buffet liked the company, so should they. This, in essence, is how the stock market works these days.