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What happens to stocks and their value when a company is nationalized?
Alex456
Talk to a Stock Broker, They will set you straight on this issue. Cheers
Wiki User
∙ 16y ago
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I was offered junior stocks in a company. Will these stocks increase in value?
no
Why stocks exchange increase or decrease daily?
Because when people buy stock, that means they are paying a company a sum to have the right to own a part of that company. When this happens the value of the company goes up. However if people do not like a company they will sell the stock they own and get money back for it. When this happens the company now holds less money and its stock goes down. This happens with thousands of listings everyday on the stock exchanges.
What do you call blackmailing a company into buying its stocks at above market value on threat of a hostile takeover?
Greenmail
What are the risks of stocks?
Stocks can lose their value quickly due to adverse market conditions. There is also a possibility that the company will go bankrupt. Market shocks can cause volatility in any single stock or group of stocks.
The Dig-Gold Mining Company stocks-1917 What value would these stock certificates be worth today?
10,000.00
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.
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 happens to your GM stocks if GM filed for bancruptcy?
Your common stock becomes worthless. The value of your shares is zero dollars.
Do you lose your stocks when the market crashes?
No. You will not lose your stocks. You'll still be owning your stocks but the value of the stocks would have fallen heavily during a market crash. For ex: if you own 100 shares of X company that is worth $10 per share then your net worth is $1000. When the market crashes your stocks value might fall to $5. You will still own 100 shares but it will be worth only $500
What is the Principles of financial accounting?
As an accountant of a public company (one with stocks, etc), if you obtain information that could affect the value of the stocks (etc.) you may not disclose this information to any third party.
How companies use stocks?
There are three reasons for a company to use stocks:1) Finance growth by selling stocks in the company. A startup may trade some percentage of the company in return for cash from early investors, at this stage the stocks are still private. The first time a company sells stock to the general public is called an IPO, Initial Public Offering. A company may issue more stocks later when it needs more capital. (Issuing more stocks may bring in more capital, but it also lowers the value of the existing stocks, as they now represent a smaller proportion of the company.)2) Get strategical control or influence by buying stocks in another company. Since stocks (normally) give voting rights, owning more than 50% of the stocks means that you own the company. Owning a smaller proportion may still give you a place on the company board. This is normally done to improve the core business, for example a company running a factory may wish to have more influence over a company delivering equipment or raw material to the factory.3) As a financial bet, attempting to buy stocks low and sell them high similar to everyone else. This may be unrelated to the company core business.
What is the disclosure principle of financial accounting?
As an accountant of a public company (one with stocks, etc), if you obtain information that could affect the value of the stocks (etc.) you may not disclose this information to any third party.
