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what do you understand by valuation of shares

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12y ago

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How do you value common stock?

They are relative to the valuation of the company and the shares issued by the company. So for example if company has 2 million common shares and the valuation of a company is 4 million dollars then each common share is worth $2. Usually valuation of company occurs upon financing and that can vary, based on how well can you sell part or all your company, so for example if you are inquiring financing of $400,000 of the company at pre-money valuation of $4 million, that means that the post money valuation is $4.4 million, you can then either issue more shares for the same pirce of $2 per share or sell some of your own for $2.2 a share, because share prices is calculated post money. However when you do get financing, most investors would rather you issue preferred shares for the same price, because they will get more privileges with the preferred shares.


What are the various methods of valuation of shares discribe and illustrate net asset method of valuing shares?

They include; Intrinsic Value Method, Yield Method and Net Asset Method.


What has the author Victor Leslie Gole written?

Victor Leslie Gole has written: 'Valuation of businesses, shares and property'


What do you mean by nifty if it relates stock and shares?

what do you mean by nifty if it relates to stock and shares


What is underlying shares outstand cer mean?

"Underlying shares outstanding" refers to the total number of shares of stock that are currently issued and held by shareholders, including those held by institutional investors and company insiders. This metric is important for assessing a company's market capitalization and overall valuation. It also serves as a basis for calculating the potential dilution of shares if options or convertible securities are exercised. Understanding the number of underlying shares outstanding helps investors gauge the company's equity structure and potential investment risks.


What underlying shares for securities mean?

It means shares of a stock (security).


What does shares traded mean for a stock listed in a newspaper?

Shares traded. This is the number of shares sold for the day, expressed in hundreds.


What do you mean by shares?

A share in a company is one of the unity in to which the total shares capital of a company is divided.


What is an attribute or a corporations shares?

An attribute of a corporation's shares refers to a specific characteristic that defines the nature of those shares, such as their voting rights, dividend entitlement, or liquidity. Common shares typically provide voting rights and a claim on profits through dividends, while preferred shares usually have fixed dividends and priority over common shares in asset liquidation but often lack voting rights. These attributes influence investors' decisions and the overall valuation of the company's equity.


Sweat shares mean?

Sweat shares are equity shares issued by a company to employees or directors at a discount. It can also be a reward for an individual's contribution to a project.


What does acquired 100 shares mean?

Generally speaking the phrase of "acquired 100 shares" means that a person has purchased 100 shares of a corporation's stock.


How can I effectively sell private shares?

To effectively sell private shares, you can start by identifying potential buyers who are interested in investing in your company. Next, you should determine a fair valuation for the shares and negotiate a price with the buyers. It is important to comply with any legal regulations and documentation requirements when selling private shares. Additionally, consider seeking the assistance of a financial advisor or broker to help facilitate the sale process.