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If average return on call option on stock is higher than average return generated by stock itself then why would an investor consider buying stock if they like the company?
Wiki User
∙ 13y ago
Which would you rather have, an investment that yields 10% on average, but sometimes -10% and sometimes 30%, or an investment that yields 10% on average, but always varies between 5% and 15%? Most people would prefer the 2nd investment, because it is less risky ... yet both investments have 10% average.
Riskier investments give higher yields, because people need to be offered something extra for the risk they are taking on. Options are risky, hence are higher yield.
Wiki User
∙ 13y ago
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Is an investor the same as a shareholder?
Nearly yes. An investor for a company is someone who has invested in the company. He may be someone who bought Bonds issued by them or equity shares issued by them. If he has bought equity shares from them, then they are both same.
Which of the following is not a type of a company that a socially responsible investor would support?
A company that puts profit-maximization above all other considerationser here...
How does the stock price affect company profit?
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 is business profit?
Profit is revenue, generated through sale of products and services, minus the costs of producing/distributing those products and services. When the revenue generated in a period of time exceeds the company's costs, the company has achieved a profit. If the costs incurred by the company exceed the revenue generated in a period of time, the company has a loss.
Would a rational investor ever consider investing in a negative growth stock?
This depends on the fundamental facts of the company. If the company has low debt, a sound business and comparative stable earning combined with continued dividend payments one could definitely invest in negative growth stocks provided the negative growth doesn't last for decades. They could also short sell the stock, which would be considered an investment, albeit extremely short term.
How does an investor get ownership interest in a company?
by purchasing shares in the company
The word investor how can it be used in a sentence?
The company I work for proudly prints the logo 'Investor in People' on its letterheads. I was an investor in Railtrack and lost all my money when they went bust. Christine Smyth is the investor relations contact at Kwik Goo, the sticky glue company.
Who was an Early investor in Disneyland?
ABC-TV company
What are shares?
A share in a company gives you as an investor a share in its dividend.
Who investor in a company?
An investor is any party who makes investment, can be anyone or a company as a whole!! say if u have some amount then you can regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company.
What is the relationship between shareholders and managers?
When you hold a share of a company, you are an investor in the company. You have invested your money in the company and it is the prime goal of the company's management to ensure that they earn sufficient revenue and profit for you "the investor" who has invested in the company. Ideally speaking, shareholders can be considered as owners of the company and the managers can be considered as employees working for the company.
Would it be illegal to pose as an investor to get into a company's closed meeting?
No, it's not.
How does a pension act as an investor?
the company invests money collected from employers
How is an institutional investor different from an individual investor?
An individual investor is a person, like you or me. In this example, assume we are each a rowboat in the ocean. An institutional investor is a business. It may be a mutual fund company. It may be a company that manages the retirement fund for teachers in your state. In this example, assume the institutional investor is an ocean liner. Now think of the rowboat and the ocean liner. Which makes the bigger wave? Which affects the other? Which can withstand a storm better?
Is an investor the same as a shareholder?
Nearly yes. An investor for a company is someone who has invested in the company. He may be someone who bought Bonds issued by them or equity shares issued by them. If he has bought equity shares from them, then they are both same.
Difference between a debenture holder and Investor?
A debenture invests fund in the company and is sure of its return eventhough the company fails through its corporate stock. An investor can only gain depending upon the market condition.
Are the questions on this site from users or the company web-sites questions or are they computer generated?
The questions on this site are from users versus being company or computer generated.
