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A company's stock price can show the following:
- The confidence and trust investors have on this company
- The profit making history of the company
- The probabilities of reaping capital appreciation on this stock
- etc
Roughly: The higher a stocks price in the market when compared to its face value, the greater investors confidence in it.
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∙ 14y ago
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Why does the value of a share depend on dividends?
One of the most commonly made mistakes is that people relate the dividends paid to the financial health of the company. Let me say that more dividends paid does not mean comapny is doing good and vice versa. Generally, if the company pays less dividend because it requires that money for a new project which in turn will add to company growth. Thus stock price increases. If company does not have any new projects and still cut on dividends than stock price may go down. In short, if company can grow faster than the markets than it should give less dividends. However, if company is growing slower than the markets than it should give more dividends so that people can invest in markets and earn more. If comapny does not follow this logic than its stock price reduces.
Distinguish opportunity cost and out of pocket cost?
Opportunity cost is the cost that one incurs from not taking an action as compared to taking another action. Stock markets are a good example of this. Say you can invest in company A and company B. You invest for 6 months. Let's say you chose company A. Over those six months, company A's stock price goes up by $5 and company B's price goes up by $11. You made a profit of $5 per share. But your opportunity cost was $6 because you could have invested in company B and made $6 more. This is important because your money would have been more efficiently spent on company B (and economics is all about efficiency). Out of pocket costs are costs that you would directly incur for any given action. Back to the stock market example. Say your broker charges you $1 to buy a share in company A and $2 to invest in company B. Those costs are out of pocket. One important point is that you may know what your opportunity costs are. In the stock market example you do not know what your opportunity costs are, but in many situations this is not the case.
Explain what is ADR for stock Will it shows strength of stock if it is greater than 60 If it is 20 what does it mean it is weak stock?
See the explanation of American depository Receipt at: http://wiki.answers.com/Q/What_does_ADR_stands_for The actual price of the ADR means nothing in itself, just like the price of a stock doesn't. The number of shares, among other things, makes the stock price higher or lower without changing any real value. (A stock with a float of say 100 shares and a price of $100 as share, would be the same if the float was 1,000 shares but the price would then be indicated as $10 a share).
What does the NYSE opening or closing number mean?
usually, any open or close statment in a stock realted conversaion, will refer to the standing of that specific stock. it easily understood when thought of in company security( stocks) i.e. say google opens ( 10am) at a stock price of 40$ a share, and closes(4;30pm) at $45, that would be the open and close prices for google on that given day.
What can you say about the philippine stock exchange?
The Philippine stock exchange is a facility in the Philippines where stock in various companies can be bought and sold. It is one of the oldest stock exchanges in Southeast Asia, it has been operational since 1927. They operate using the Stratus Trading System (STS) with a company named Equicom.
What effect does a stock dividend have on a companys total assets?
A Dividend would result in the company's asset decreasing. Let us say a company has $2,000,000,000 total assets and 1,000,000 shares in the stock market.If the company offers a $5 dividend per share then it means that they need to pay out $5,000,000 as dividends which means their net assets would be $1,995,000,000/- after the dividend payout.
What does it mean if you buy stock in the stock market?
Stock literally means "goods". If you buy some, it means you own a small percentage of the company. If the company's goes up, your stock value increases and you can sell it to someone else for profit.
If a stock splits will new stock certificates be issued?
I can only say that when my stock split the company issued new stock certificates.
What does is say about a company that buys its own stock back?
Sales Returns
How much is www.answers.com worth?
If you mean how much is the site worth - I would say "invaluable". If you mean how much the company Answers Corp is worth - at the current stock price it's worth 67.2 million dollars.
What is the different between preference shares and paid-up shares?
Preference shares have a dual nature. They receive a fixed interest payment for a pre determined time period (say 10 years) or for a specific stock price of the underlying company (say $40). When the criteria has been met the preference share can be converted into "common" stock or sold back to the issuer depending on the terms. When a company needs money, it sells stock which reperesents an ownership in the company. So if a company issued shares for $10 par value but at the time of selling the stock was $50 it has a "paid up" of $40. Par value almost always means nothing. So the company wouldve sold a portion of its business for $50 a piece.
What is the definition of a stock split?
It is when a company divides its shares a stock split is when the company holding the stock decides to cut the face value of its stock by a particular % and correspondingly increase the number of stocks in circulation in the market. A 2 for 1 stock split refers to a corporate action by a stock company wherein the face value of a stock is cut in half and after the action date, there will be twice the number of shares of that company in the market. Say for ex: XYZ limited has 1 million stocks in the market with each of face value $10, after the split there will be a total of 2 million stocks in the market of the same company each with a face value of $5. This is done for a variety of reasons. The stocks price on the current face value might have gone too high and is affecting its trading volumes or the company wants to do it for any other tactical reason.
What does it mean to own a stock?
owning a stock means - owning a portion of a company. Every stock holder who holds stocks of a particular company are partly owners of that company. Let us say you own 1 million stocks of a company XYZ which has a total of 10 million stocks in the market, you are a 10% stake holder or 10% owner of the company.
What is a 2 for 1 stock split?
A 2 for 1 stock split refers to a corporate action by a stock company wherein the face value of a stock is cut in half and after the action date, there will be twice the number of shares of that company in the market. Say for ex: XYZ limited has 1 million stocks in the market with each of face value $10, after the split there will be a total of 2 million stocks in the market of the same company each with a face value of $5. The net worth or the market capitalization of the company would remain the same after the split. So effectively, the market price of the company would also get cut in half when the split happens.
Why does the value of a share depend on dividends?
One of the most commonly made mistakes is that people relate the dividends paid to the financial health of the company. Let me say that more dividends paid does not mean comapny is doing good and vice versa. Generally, if the company pays less dividend because it requires that money for a new project which in turn will add to company growth. Thus stock price increases. If company does not have any new projects and still cut on dividends than stock price may go down. In short, if company can grow faster than the markets than it should give less dividends. However, if company is growing slower than the markets than it should give more dividends so that people can invest in markets and earn more. If comapny does not follow this logic than its stock price reduces.
How much is a taxi from the Vancouver port to the airport?
Well it all depends on the Taxi Company you drive with. Each taxi company have different rates and this mean different prices, so it is differcult to say. All I could say is check put a few taxi companys and check their rates and then find out how many miles it is to your destination. This would help determinate the price. NOBODY GIVES A FLYING CRAP , LMAOO (; WANNA HAVE SEX THOU ? (;
Distinguish opportunity cost and out of pocket cost?
Opportunity cost is the cost that one incurs from not taking an action as compared to taking another action. Stock markets are a good example of this. Say you can invest in company A and company B. You invest for 6 months. Let's say you chose company A. Over those six months, company A's stock price goes up by $5 and company B's price goes up by $11. You made a profit of $5 per share. But your opportunity cost was $6 because you could have invested in company B and made $6 more. This is important because your money would have been more efficiently spent on company B (and economics is all about efficiency). Out of pocket costs are costs that you would directly incur for any given action. Back to the stock market example. Say your broker charges you $1 to buy a share in company A and $2 to invest in company B. Those costs are out of pocket. One important point is that you may know what your opportunity costs are. In the stock market example you do not know what your opportunity costs are, but in many situations this is not the case.
