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Q: What is the number of shares sold each day in the stock market is discrete or continuous?
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Why is the number of shares held by stockholders discrete?

It is discrete because if it did have decimals, lots of money would be lost. For example, if you have a stock at $20.36, and you buy 100.2 shares, the value of those shares is $2040.6828. If over a period of time, the stock goes up $2, it it will be at $22.36. This makes the value of shares $2240.472. Basically, you have earned $199.7892. But now what do you do with the .7892? If you decide to round up to .79, but a thousand people are selling their 100.2 shares, then they are owed a total of $.8. If this happens every day over a year, they are owed $29.2. If every stock did that then the extra amount owed due to the rounding would be massive. Looking the other way, if you round down every time to .78, then each person holding 100.2 shares will lose $.0092. Again if there are 1000 people, collectively they will lose $9.2. And over a year, that is $3358 that just disappears. Because you can neither round up or down (because it will result in disaster) the amount of shares held by the shareholders must be discrete.


How many shares are traded on average in the stock market?

This would obviously depend on the popularity of the stock in question. Most of the stocks are in the hundred thousands, if not millions of shares on a daily basis.


Which stock represents the largest number of common shares?

Outstanding


Explain how both a stock split and a stock dividend affect the computation of the weighted average number of shares outstanding?

Stock splits and stock dividends both affect the Weighted Average Number of Shares Outstanding in the same way. When it occurs, you act as if it happened at the beginning of the year, and throughout previous periods.


How can you use as bar graph to determine which state had the least number of votes?

The answer depends on what the bars show. If they are the percentage shares of total votes that were cast for one party (or candidate) then you cannot.

Related questions

How is market cap determined?

total number of shares multiplied


How is the market cap determined?

total number of shares multiplied


Why does prices of shares change in the share market?

why does prices of shares change in the shares of market?


What does volume mean in stock market listing?

"Volume" is the number of shares of an issue that traded on a market day.


Do market shares burden the company?

Market Shares depend upon the company prices. If market down then company shares will be down. Then its true that market shares is always burden for the company.


What is stock repurchase?

Companies offer a privilege to repurchase its own shares from the shareholders with higher price comparing to the market. A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares, because a share repurchase reduces the number of shares outstanding (i.e. supply), it increases earnings per share and tends to elevate the market value of the remaining shares.


What is repurchaser?

Companies offer a privilege to repurchase its own shares from the shareholders with higher price comparing to the market. A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares, because a share repurchase reduces the number of shares outstanding (i.e. supply), it increases earnings per share and tends to elevate the market value of the remaining shares.


Describe how market capitalization is determined?

The number of shares is multiplied by the price of each share


What describes how market capitalization is determined?

The number of shares is multiplied by the price of each share


What is stock market trading?

A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately..


What is the market value of a firm?

The stock price multiplied by the number of stock shares outstanding. for example if there are a million shares of stock and the the price is 1 dollar per share then the market value is one million


What is the mening of dividend?

If you own shares in a publicly listed company (one where the shares are traded on a stock market) then, if the company makes a profit in a year, the profit is divided by the number of shares that exist and paid out to the share holders (in proportion to the number of shares they each hold). This payout is called a dividend.