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If many companies have equal risk what determines why some have higher stock prices?
Companies with expectations for high return will have higher relative common stock prices than those companies with poor expectations. Since the securities' prices in the market reflect the combined judgment of all the players, price movements provide feedback to corporate managers and let them know whether the market thinks they are winning or losing against the competition.
The number of shares is also one of the reason. It works like this. If you bought $100 from 10 people ten rupees each then each one should get ten $s each from you. If you bought $100 from 5 people $20 each then you have to woe them $20. The share prices also works like this.
The face value of share price also another reason. Which is almost similar to above reason.
The relative values of companies also factors into it, or at least it does in a sober market. (Yes, I am referring to the dot-bombers...) Say Pat's Steaks, a cheesesteak shop in Philadelphia, decided to issue a million shares of common stock. This is a company with exactly zero risk--if the whole place burned to the ground tomorrow morning they'd have it running again in a month and, assuming their business records are off-site, they wouldn't be hurt much. But it's a single-location restaurant that's about the size of your living room. There's no way you could get this place to value out at more than MAYBE two dollars a share, because the only thing it has is name and reputation. Now, if a company with $30-$40 million worth of equipment and $100 million in sales, and the exact same level of risk as Pat's Steaks, sold a million shares of common stock, the valuation would be vastly different.
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What happen when demand and supply are not equal?
When demand is higher than supply prices are going up, at some level customers don't want to buy and sales are going down. When supply is higher than demand prices are going down, at some level demand is again higher than supply and prices are going up.
What method does 'OPEC' use to raise the price of oil?
OPEC uses supply and demand to determine prices. If they want to raise the price, they slow down production. The lower supply will equal higher prices.
Why doesn't demand equal marginal revenue in a monopoly and how come this discrepancy occurs?
In a monopoly, demand does not equal marginal revenue because the monopoly firm has the power to set prices higher than the marginal revenue. This discrepancy occurs because the monopoly has control over the market and can influence prices to maximize profits, unlike in a competitive market where prices are determined by supply and demand forces.
When the price of a commodity increases the quantity demanded from that commodity is expected to decline?
When the price of a commodity increases, consumers typically react by purchasing less of that commodity, leading to a decline in quantity demanded. This behavior is driven by the law of demand, which states that, all else being equal, higher prices result in lower quantities demanded because consumers may seek substitutes or reduce their overall consumption. Additionally, higher prices can limit affordability, further decreasing demand.
When all other factors are equal what will happen to the supply of a product if the price goes up?
When all other factors are equal, an increase in the price of a product typically leads to an increase in its supply. This is because higher prices incentivize producers to allocate more resources to the production of that product, as they can achieve greater revenue and profit. Consequently, suppliers are more willing to produce and sell larger quantities at the elevated price.
Assume you are looking at many companies with equal risk; which ones will have the highest stock prices?
Given companies with equal risk, those companies with expectations of high return will have higher common stock prices relative to those companies with poor expectations.
What happen when demand and supply are not equal?
When demand is higher than supply prices are going up, at some level customers don't want to buy and sales are going down. When supply is higher than demand prices are going down, at some level demand is again higher than supply and prices are going up.
What determines whether a number is within specified range?
If the numbers in the specified range are specified from lower to higher, then, to be in the range, your number must be greater than or equal to the first, and it must also be less than or equal to the second.
Does cheap phone service equal bad customer service?
No, cheap phone service or any service for that matter doesn't necessarily equal poor service. Some companies can afford to offer lower prices because they service a higher number of customers. However you should always check Better Business Bureau and customer review sites before choosing a phone carrier.
What method does 'OPEC' use to raise the price of oil?
OPEC uses supply and demand to determine prices. If they want to raise the price, they slow down production. The lower supply will equal higher prices.
Why doesn't demand equal marginal revenue in a monopoly and how come this discrepancy occurs?
In a monopoly, demand does not equal marginal revenue because the monopoly firm has the power to set prices higher than the marginal revenue. This discrepancy occurs because the monopoly has control over the market and can influence prices to maximize profits, unlike in a competitive market where prices are determined by supply and demand forces.
What are the pros and cons of buying bank stocks?
In the current market Bank stocks at companies such as Morgan Stanley, Bank of America, JP Morgan and Wells Fargo are all trading at historically low prices. When these stock prices normalize an investment at these low prices can equal big profits. The cons to this would be the same as any stock--namely the uncertainty is a con. However, bank stock prices will rise so buying stocks in of of the aforementioned banks could equal large returns in the future.
Should companies be permitted to provide different leveld of speed at different level of speed at different prices?
Allowing companies to provide different levels of speed at different prices can lead to unequal access to resources and opportunities, which can perpetuate existing social inequalities. It is important to ensure that all individuals have equal access to essential services without discrimination based on ability to pay.
What determines the mass of objects that have equal volume?
Density. This is quantified as a mass over a volume, so if you know the volume, the density will allow you to determine the mass of an object. Density equals mass divided by volume so mass is equal to density multiplied by volume.
Are multiples higher or lower than the number?
Equal to and higher.
Why are online game shop prices equal to normal shop prices?
The prices of online games will be equal or less than the price of purchasing a game in a store or shop. The reason that they would be the same or less is because they do not have the overhead costs associated with owning a store.
What particle does the atomic number equal in the nucleus?
The number of Protons in the nucleus determines the atom's Atomic number.
