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The value of shares in a company are affected by many things. It also depends on what kind of shares they are. Lets assume shares that are openly traded on the stock markets. In order to make these share prices rise the company needs to inform the Stock Market of some "good news" this can be a potential take over bid, winning a major new contract, or even winning a law suit ( lily's shares rose considerably after winning the Prozac case in Kentucky). Sometimes even the appointment of a new MD or senior manager can cause increases in share price. Normally share price would rise if the company where to report higher than expected profits. If you wanted to force the shares to rise you would need a lot of money and you would have to start buying a large number of that companies shares. This may cause a run on those shares as other traders see a sharp increase in the share values. If you assume that the shares are held in a non listed company then the only way to increase the share value is to increase the companies value. You can do this in a number of ways but basically comes down to the level of pretax profits.
AnswerThe price of a stock is determined by how much people are willing to pay for it. Like anything else, stock prices are determined by supply and demand. Stock traders set the price for stock by offering a Bid price, which is the price that they are willing to buy the stock for, and Ask price, which is the price they are willing to sell the stock for. If enough people come into the market to buy the stock, all the people who are selling the stock for a certain price will be taken out, and the next best ask offer will come into the market, which will be a higher price. In order to move the price of the stock higher, you will have to buy stock from all the people who are currently selling the stock at the current price.Answer
Stocks are controlled by 2 things, supply and demand. The more supply and/or the less demand you have, then stocks will plunge. The less supply you have have and/or more demand, then stocks will rise.
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What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
What is the formula of asset backing ratio?
Book Value of Shares divided by paidup Valur of Shares.
What is the journal entry for a stock split?
1. For stock split there is no general entry passed as there is no change in the value of stocks just change in the number of shares. Example: If you have 10 shares of $10 each then total value is $100, if company decide to Split 2 to 1 then 10 became 20 shares of value of $100, so unit value is reduced to $5 each share but no change in the total value of shares.
What meant by nominal value of shares?
Nominal value of shares refers to the value of share expressed in monetary terms. It is the fixed value of an issued security for the specific year or years without adjusting or inflation. It is also called par value or face value.
What is term stock split?
Stock split means to increase the existing number of shares to more shares for example if a person has 10 shares and company announce stock split for 2 for 1 it means the person who has 10 shares will have now 20 shares of the same price. it doesnot change the total value of shares investment but change the value per share.
Did the issuance of huge quantities of paper money cause the value of money to rise or decrease?
rise sanju
What is the meaning of issues of shares at premium?
When shares are issued at value which is more than face value then it is called shares issued at premium.
Who will judge the rise and fall of shares?
All those who are buying and selling each day are "judging" in a sense. The market determines the value, and the buyers and sellers are that market.
Why do investors buy stock in a corporation?
Investors buy stock in corporations because they expect the value of stock to rise and they wish to receive dividends (shares of profit).
What do shareholders want from organization?
Shareholders buy shares in a business on the stock market, putting capital into that business. What shareholders usually want is a return (profit) on their investment, usually in the form of dividends, or by selling off shares should share value rise.
What are stock drividends?
A stock dividend is a rise in the number of shares of a entity, which sees new shares being offered to shareholders.
Do shares in Australian company come with a par value?
No, Australian companies do not have a par value (or nominal value) for their shares. The concept of par value was abolished by law in Australia in 1998.
What should you do in a project on shares and dividends?
How about recording over a short period of time what shares go up in value and what shares go down in value. The try and explain why the change
Are powergen shares still valid?
Do Shares of Kennesaw Life and Accident Insurance Company Atlanta Georgia purchased in 1966 still have value?
What is in yeast to cause something to rise?
What is in yeast to cause it to rise
Where shares without par value?
The No-Par value shares are those whose prices are determined by whether the investors want to pay for them or not.
How no of shares that will be floated will be decided?
Number of shares to be floated depends on the quantam of funds expected and the face value of proposed shares.
