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If most investors expect the same cash flows from companies A and B but are more confident that A's cah flows will be closer to their expected value WHICH company should have the higher stock price?
Wiki User
∙ 9y ago
Investors in the company will drive the stock price up for Company A if they are more confident that Company A's cash flow will be closer to their expected value. Company A's stock price will be higher than Company B.
Wiki User
∙ 9y ago
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What is the difference between a holding company and an investment company?
A holding company is a company that owns the outstanding stock of other companies, giving it control over those companies' operations and management. An investment company, on the other hand, is a company that pools money from investors and uses that money to buy securities, such as stocks, bonds, and real estate. The primary business of an investment company is to invest in these securities and manage them to generate income and capital appreciation for the investors. In summary, a holding company acquires and controls other companies, while an investment company pools money from investors to invest in securities. My Recommendation: 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟕𝟐𝟓𝟕𝟔/𝐝𝐡𝐫𝐮𝐯𝐫𝐚𝐣_𝟔𝟎𝟗𝟏/
What are benefits of private placement to companies and the investors?
to attain some benefit from this private company the shares are being sold to
How do you get funds for from investors for your company?
There are many ways to get funds from investors for your company. It may be easier if you are friends with investors, however writing letters and meeting with investors will be the best way to get funds.
What is the Importance of investors in a firm?
Investors provides the funds (business capital) which the company uses to operate. With no investors there is no business.
What is a share-for-share exchange?
Pretty much what it sounds like: two investors exchange an equal number of shares of two different companies. This is usually done when a corporation is taking over another one: the investors in the company being swallowed will turn in their shares in the old company for shares in the new one.
Why should companies pay dividends to his investors?
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. So whenever the company is making good business & profits, it is their responsibility to share their profit with the investors. This would motivate the existing investors to stay invested and new investors to buy the company's stocks.
How joint-stock company work?
Joint-stock companies were companies in which a group of people that invest in together. The investors all shared a part of the company's profits and losses. The joint-stock company allows all investors who buy a part of the company to share all profits and losses. It would allow the investor to lose less money than compared to when they were the sole owner of the company.
What is A company that uses the money it receives from investors to buy securities from corporations and governments?
A company that uses the money it receives from investors to buy securities from corporations and governments is called an investment company. These companies pool money from multiple investors and use it to purchase a diversified portfolio of stocks, bonds, or other securities on behalf of their investors. Examples of investment companies include mutual funds, exchange-traded funds (ETFs), and closed-end funds.
What is the difference between a holding company and an investment company?
A holding company is a company that owns the outstanding stock of other companies, giving it control over those companies' operations and management. An investment company, on the other hand, is a company that pools money from investors and uses that money to buy securities, such as stocks, bonds, and real estate. The primary business of an investment company is to invest in these securities and manage them to generate income and capital appreciation for the investors. In summary, a holding company acquires and controls other companies, while an investment company pools money from investors to invest in securities. My Recommendation: 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟕𝟐𝟓𝟕𝟔/𝐝𝐡𝐫𝐮𝐯𝐫𝐚𝐣_𝟔𝟎𝟗𝟏/
What are benefits of private placement to companies and the investors?
to attain some benefit from this private company the shares are being sold to
How do investors help companies?
They invest in them, which shows that they think the company can be successful, It also shows that they trust the company which means other people will buy their products.
Did the directors of the Virginia company expected the Jamestown colot to be self-sufficient from the outset?
They were out for profit and to pay back the investors. It wasn't suppose to be a colony.
Why do companies present accounts in a formal way?
To show they are a reputable company and to encourage investors. If shown in a haphazard manner it will come across as a disorganised company and show the flaws in the company.
What is an Israel-facing company?
An Israel-facing company refers to businesses that were founded in Israel / have R&D in Israel / do business in Israel / and investors in Israeli companies.
How do you get funds for from investors for your company?
There are many ways to get funds from investors for your company. It may be easier if you are friends with investors, however writing letters and meeting with investors will be the best way to get funds.
What is the symbol for Investors Title Company in NASDAQ?
The symbol for Investors Title Company in NASDAQ is: ITIC.
What is difference between shareholders and investors?
Shareholders are investors that hold shares in the company. Investors are the investing public of which some own shares in the company.
