The company's earning record and future earnings probability will influence the price of the stock to a very large extent.
In the strictest sense of the word, not much. As long as the company does not run out of cash, then its stock price is irrelevant to the company's operations. However, stock price is a reflection of what the market thinks the company's equity is worth, and this has implications. So, here are some scenarios: If the stock price undervalues a company's equity... it will tend to attract buyout offers and hostile takeovers as people take advantage of the stock's low price. Also, investors will be unhappy with the stock performance and the CEO will not collect large bonuses. So CEO turnover is another symptom of a low stock price. And finally, underpriced stock will also tend to be "bought back" because the company views it as a good investment. If the stock price overvalues a company's equity... the company will be more prone to using its stock to acquire other companies. Stock buyback become less attractive, and it becomes very expensive for the company to be acquired.
increase in stock prices increase investor belief in company as a result stakeholder (loan provider , creditor etc.) extend more facility to company as a result copmany earn more profit
Yes, you own part of the company.
The market price of a share of stock is determined by the forces of demand and supply. Shares represent partitions in the ownership of a company.
The price of a stock (or share) depends on the confidence that people have in the future of the company. Their confidence is influenced by news from and about the company and its operating environment. Example is that the price of stock may change if the Chief executive officer retires. If people lacked confidence in him then his retirement may cause the stock price to rise.
earnings per share
The basic definition says "The stock price is calculated by subtracting the dividends of a certain stock from the company's net income, and then dividing that number by the number of outstanding shares ." but there are other factors like demand and supply of stock in market which affect stock price.
In the strictest sense of the word, not much. As long as the company does not run out of cash, then its stock price is irrelevant to the company's operations. However, stock price is a reflection of what the market thinks the company's equity is worth, and this has implications. So, here are some scenarios: If the stock price undervalues a company's equity... it will tend to attract buyout offers and hostile takeovers as people take advantage of the stock's low price. Also, investors will be unhappy with the stock performance and the CEO will not collect large bonuses. So CEO turnover is another symptom of a low stock price. And finally, underpriced stock will also tend to be "bought back" because the company views it as a good investment. If the stock price overvalues a company's equity... the company will be more prone to using its stock to acquire other companies. Stock buyback become less attractive, and it becomes very expensive for the company to be acquired.
Basically the stock marketis like any other market in the economy. Prices are regulated by demand and supply. Now there are various factors which affect demand and supply which will affect the price. Those factor can be news for example. A good CEO has left the company, or the company has committed fraud. Those things make people loose trust in the company and they will sell the stock which means the price goes down. Still over history it can be calculated which trend the current stock price is going. blog.vantagetrade.com is giving greater insight in how that works.
increase in stock prices increase investor belief in company as a result stakeholder (loan provider , creditor etc.) extend more facility to company as a result copmany earn more profit
What was the price of Detroit Edison company stock in 1980
An increase in demand for the company's stock
Dole food Company is one of the world's largest suppers of fruits and vegetables. However, it is not a publicly traded company and as a private company has no stock price.
A Stock option is a benefit given by a company to an employee. The employee is encouraged to buy stock in the company at a discounted price, thus helping the company.
It simply means a drop in the stock price of the company.
They are a private company.
Silver is not a company. It would not appear on the stock exchange.