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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
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How does a company affect the price of its stock?
The company's earning record and future earnings probability will influence the price of the stock to a very large extent.
What does a company's stock price say about that company?
A company's stock price can show the following:The confidence and trust investors have on this companyThe profit making history of the companyThe probabilities of reaping capital appreciation on this stocketcRoughly: The higher a stocks price in the market when compared to its face value, the greater investors confidence in it.
How does stock price affect a company?
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.
Why do stocks rise and fall?
Stock prices rise and fall depending on a company's profits. If a company's profits keep growing, its stock price will grow as well. If a company's profits fall, the price of the stocks will fall as well. The price of the stock actually is dependent on investors confidence in the company to continue to grow and show a profit. For instance, a company's profits could be stable or even increasing, but if a rumor that it is about to experience hard times is believed, it's stock price could fall. Answers with links in them are not permitted.
Do you still have stock if the stock dips below your buying price?
Yes, you own part of the company.
How does a company affect the price of its stock?
The company's earning record and future earnings probability will influence the price of the stock to a very large extent.
Why people want to buy a share in a company even if the company has not made profit?
because they expect the stock price to go up
What is nonprofit stock?
There is no such thing as non profit stock. Stock implies ownership in a for profit company.
Why does the gross profit increase when the value of closing stock increases?
It doesn't. Gross profit is the of a company is the profit it receives for the product or service produced after the cost of that service or product. It does not take into account any other expenses incurred by the company. Net profit takes this into consideration. Price of stock can increase or decrease the available money for a company to invest or use for generating income.
What does a company's stock price say about that company?
A company's stock price can show the following:The confidence and trust investors have on this companyThe profit making history of the companyThe probabilities of reaping capital appreciation on this stocketcRoughly: The higher a stocks price in the market when compared to its face value, the greater investors confidence in it.
An increase in the market price of a company's common stock will immediately affect its?
earnings per share
What is a stock option and how do you use it?
Stock options allow you to buy stock in a company at a certain price, no matter what the price of the stock is currently. There is usually a time period associated with the offer. Sometimes this could be a sweet deal (if the stock is currently higher than the option) to worthless (if the option price is higher that the current stock price). You also don't have to have the funds to exercise the option, you can have a brokerage company exercise the option, then sell the stock at the higher price, with the difference being your profit.
Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
How to Calculate stock price?
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.
How does stock price affect a company?
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.
Why do stocks rise and fall?
Stock prices rise and fall depending on a company's profits. If a company's profits keep growing, its stock price will grow as well. If a company's profits fall, the price of the stocks will fall as well. The price of the stock actually is dependent on investors confidence in the company to continue to grow and show a profit. For instance, a company's profits could be stable or even increasing, but if a rumor that it is about to experience hard times is believed, it's stock price could fall. Answers with links in them are not permitted.
Price per share?
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
