Shares are priced based on expectations of future growth and profitability for a company. If those expectations are dashed, share prices can fall. One way to estimate this growth is by looking at the dividends a company pays to its shareholders, which represent profitability. Other factors to look at will include a company's future cash flows, its level of debt, and the amount of liquidity it has on hand. These are examined to see if a company can meet both its long-term and short-term obligations.