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Do investors in the stock market have a beneficial or harmful effect on the companies whose stocks they buy or sell?
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∙ 11y ago
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Wiki User
∙ 11y ago
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What are the assumptions of the modigliani and miller hypothesis in relation to capital structure?
Modigliani and Miller's capital structure theories assume a society where there are no taxes, no transaction or bankruptcy costs, equal borrowing for companies and investors, equal access to information for companies and investors, and that debt won't effect a company's earnings. This leads people to very critical of their hypothesis since those assumptions are far removed from the real world's actions.
Why do companies have stock splits?
Your right to see that, under most analysis, doubling the number of pieces of the pie doesn't vhange the amount of the total, just that each piece is half the size it was. The owner of the stock has double the number of shares, each half the value they were, but the total value of the shares is unchanged. However, stock values have some market preference features that also effect price. The ability to attract more investors at a stock share price that is in a range that makes investors feel compfortable, generally over $25 and below $50, is a common comfort level. Perhaps, some investors feel better about owning a larger number of shares because it makes them feel more substantial. Also, reflecting general rising market conditions, it may be easier for a share price to change by small incriments, which on a lesser value is a greater percentage. This added marketablitity can have the effect of strengthening share price.
How does the stock market effect mortgage refinancing rates?
When the stock market drops it tends to help mortgage rates since investors tend to go towards Mortgage Backed Securities. However, as of now there is no direct correlation between the two.
What effect does Foreclosure have on credit?
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
Which government activities most directly promote socially responsible business practices?
The way that taxes are charged on profits has a large effect on the way that companies manage their money. Environmental rules, employment law and the way that the product gets to market also have an effect.
Do investors in the stock market have a beneficial or harmful effect on the companies whose stocks they buy and sell?
well yes and no.. they do have both a beneficial and harmful effect on the companies whose stock they buy and sell because some are gaining money while others are losing money and it can't happen at the same time which is why its both but in other words it takes money to spend money..
What are The beneficial and harmful effect of bacteria?
because it causes diseases
What is beneficial mutations?
Well, there is no specific type of mutation that is beneficial. They can be harmful, helpful, or have no effect at all.
What are the harmful and beneficial effect of a volcano?
[[User:207.75.224.2|207.75.224.2]] --Beneficial: The ash is rich in nutrients and is good for plants. --Harmful: The gases spued out from some of the volcanoes would suffocate the people who inhaled them.
How does human impact affect Saguaro?
Yes, humans affect the life of the giant saguaro cactus [Carnegiea gigantea]. That effect may be harmful or beneficial. Examples of harmful effects are impervious surfaces, pollution, and traffic. Examples of beneficial effects are protected lands and protective legislation.
What are the beneficial effect of chemical change?
useful photosynthesis cooking food process of digestion harmful pollution rusting taking highly acidic food
How may changes to genes that is mutation result in harmful beneficial or neutral effects to the organism?
Mutations are random changes so there is no way to predict what kind of effect they will have.
Beneficial and harmful effects of neutron bomb?
Benefits: You can take out any living creatures without destroying as much buildings. Harmful effect(s): Neutron bombs can leave an area radioactive for days and disrupt electronics.
Allelopapatic effect of tithonia diversifolia on amaramthus viridis?
Uh the word is Allelopathic (which is the beneficial or harmful effects of one plant on another plant by the release of chemicals) and I believe the answer is inhibited germination.
'What was the containment policy overall effect of containment beneficial or harmful to the goals and ideals of the US'?
Look at it from a medical prospective; the US wanted to keep the cancer from spreading to other parts of the body.
What is in effect when investors purchase stock?
supply and demand
What does beneficial mean in the sentence 'Oxygen has a beneficial effect on your body and brain'?
knndknekrn
