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What happens to stocks and their value when a company is nationalized?

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Answered 2007-06-20 03:29:46

Talk to a Stock Broker, They will set you straight on this issue. Cheers

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I was offered junior stocks in a company. Will these stocks increase in value?


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?


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.

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 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.

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.

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 happens to your GM stocks if GM filed for bancruptcy?

Your common stock becomes worthless. The value of your shares is zero dollars.

What would happen if you invested your money in stocks and shares portfolios?

Your stocks will be worth the money you paid for them, but can increase or decrease depending on whether or not the value of the company goes up. Companies will also pay you a specified divident of their profits which is dependent on how much profit they make and how many shares you own. You don't get paid if the company doesn't make a profit. ------------------------------------------------ The value of the stocks can go up or down, if they go down (or the company goes bust) you lose money if you have to sell the stocks. If they go up you can make money if you choose to sell your stock holding. It is therefore a risk.

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.

What is the difference between market value and market capitalization?

Both market value and market capitalization are terms corresponding to the stock of a particular company. Market value - this is the price of one stock of that particular company on any given trading day. Market Capitalization - this is the consolidated value of all the stocks of a particular company at the current trading days prevailing market value. For ex: if XYZ limited has 1 million stocks in the market which are trading at a current price of $4 per share then the market value is $4 and market capitalization is $4 million.

The Dig-Gold Mining Company stocks-1917 What value would these stock certificates be worth today?


What advantages do bonds have over stocks?

2 advantages are... it usually guarantee return and if company is in trouble stock lose value then bond.

Does common stocks have par value after listing in stock market?

par value of a stock legally disappear after a company published its 1st financial statement. and remain with 2 values only : market value and book value

What is the contact phone number for the Capital Appreciation Fund company?

Capital Appreciation Fund is a mutual fund that increases the value of assets through growth stocks. The higher the investment with growth stocks, the greater the risk. There is no information about a company named Capital Appreciation Fund.

How does the stock market operate?

I am not a professional in the matter but here is how i believe it works. Large and small businesses create stocks that the common person (as well as rich individuals) may buy. By buying these stocks you are financially supporting the company whos stocks you bought. The company then uses your money and turns it in to more money, increasing the value of your stock. As long as the company continues to do well your stock will raise in value, and you can sell it for more money down the road. Hopefully my answer helped you. Recommend my answer if it did. Thanks for your time.

What is M.cap?

M cap refers to Market capitalization. This refers to the total value of all the outstanding stocks of a company. Let us say there are 100,000 shares of XYZ company in the market. The value of each share is $5 then the market cap of XYZ company is $500,000

What is a sentence for the word stocks?

Stocks have lost their value. You should not buy Stocks.

What happens to market value of a firm's stocks and bonds if the firm unexpectedly issued more stocks and bonds without simultaneously increasing its investments by a like amount?

All other things being equal, the per share value will drop because the capitalization has been diluted.

What are bonds and stock?

stocks are like investments ina company. Say for instance, you have stocks in a company (lets say mcdonalds for example). If the revenue was going great that year, then your stocks would be worth more that you bought them for. If they aren't your stocks may go down in value.. as for bonds.. I'm not quite sure. @above If you do not know the answer, don't reply at all Stocks and bonds are issued by firms to raise capital for their investments and other operations. Bonds are used to obtain debt capital, and the capital that is raised by issuing stocks is called equity. The stocks issued are bought by institutional and household investors. So, now they are equity holders in the company. So, they get dividends from the company, and also get capital gain (when the stock price increases). Stocks attract investors because they are highly liquid (can be easily sold/bought when required )

How much is 1 share of stock?

Because of the fluid nature of the stock market, and the laws of supply and demand, stocks for each company vary widely, and change through time as well. Stocks can range from pennies to hundreds of dollars, depending on the company, its value, and the current state of the market.

Why are stocks a necessity?

Stocks are shares of a company people buy. Their dollars help the company to grow. If the company grows, they get money back on their stock investment, while retaining the initial value of the stock. They can take this money as a dividend, or use it to buy more stocks - and hence (hopefully) earn even more money. A person who invested $1,000 in Microsoft in 1983, and left the investment alone, would have been a millionaire in 1998, though that is an extreme example.

What is market anomalies in efficient market?

The main feature of efficient markets is that they are not predictable. For example, if the stock market (e.g. NYSE) is efficient, it follows that it is impossible to predict what prices of stocks will be in the future. Market anomalies happen when some prices in the market turn out to be predictable. The most important anomaly is probably the value anomaly: stocks that have a low market value compared to their accounting value (ie "value stocks", with high book-to-market value) tend to outperform stocks that have a large market value relative to their book value (ie "growth stocks" with low book-to-market stocks). Another example is the so-called "momentum" anomaly. It says that stocks that have a large return during a certain period will tend to continue having larger return than other stocks for some time.

How well do internet stocks sell?

Internet stocks tend to have a high value; therefore, internet stocks sell for a lot of money. Internet stocks such as Ebay and Google have some of the highest values.