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How can a bursting of an asset-price bubble in the stock market help trigger a financial crisis?
Because... economics.
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
What is market value?
The highest estimated price that a property will bring in a competitive and open market and under all conditions required for a fair sale.
Explain why judging the efficiency of financial decision requires the existence of a goal?
The goal of the firm is wealth maximization so efficient financial management requires the existence of goal or objective. The goal of the firm is earning market per share but we can know about best company by finding it's market share price. It is a reflection of the firm's investment, financing, and asset management decisions.
What is derivative in financial?
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. For more detailed information, refer to the Investopedia website.
How can a bursting of an asset-price bubble in the stock market help trigger a financial crisis?
Because... economics.
Do financial statements show the market value of an asset?
In general, financial statements show the book value of an asset, not the market value. The few instances where the financial statements will show market valuations are as follows: * When derivatives are carried for hedge purposes, they are periodically marked-to-market * When an investment appears to materially have lost value (when comparing to similar instruments in the market or, for illiquid markets, when operating cash flows from an investment go down markedly), conservatism requires the asset value to be moved to the "market" or lower price
What is market price determined by?
the market or market forces
How can price be determined in a free market economy?
In a perfect free-market economy, price is determined by supply and demand.
How do you price an asset which is not currently traded on the market?
estimating the price with the season
What is the par value of an asset?
The par value of an asset is the price that was paid for it or the stated price, without consideration of markets pressures.For example, the par value of a US Treasury Bond set at $100,000 and paying 5% interest has a par value of $100,000. The market value may be higher or lower depending on financial market conditions.
What is risk asset?
price,market risk, intrest rist...
Why market price of share differ from book value?
market value is based on demand for the asset, whereas book value is based off the asset's depreciation rate (BV= cost - accumulated deperciation) which is determined by useful life and salvage value. (cost-salvage rate/life)
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
Market price of a share of stock is determined how?
Market price is the price at which a buyer is willing to buy and a seller is willing to sell.
How the price of a good is determined by market forces?
lakshay
How price are determined in a competitive market?
based on economy
