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What else can I help you with?
What is it called when a stock is sold at a higher price than the purchase price?
When a stock is sold at a higher price than the purchase price, it is called a capital gain.
When should you exercise a put option?
You should exercise a put option when the stock price is below the strike price of the option, allowing you to sell the stock at a higher price than its current market value.
If most investors expect the same cash flows from companies A and B but are more confident that A's cah flows will be closer to their expected value WHICH company should have the higher stock price?
Investors in the company will drive the stock price up for Company A if they are more confident that Company A's cash flow will be closer to their expected value. Company A's stock price will be higher than Company B.
When is the best time to exercise stock options?
The best time to exercise stock options is when the stock price is higher than the exercise price, allowing you to maximize your profit.
Is it possible to place a bid higher than the ask price in a stock market transaction?
No, it is not possible to place a bid higher than the ask price in a stock market transaction. The bid represents the maximum price a buyer is willing to pay, while the ask price is the minimum price a seller is willing to accept. The bid and ask prices must align for a transaction to occur.
What is it called when a stock is sold at a higher price than the purchase price?
When a stock is sold at a higher price than the purchase price, it is called a capital gain.
When should you exercise a put option?
You should exercise a put option when the stock price is below the strike price of the option, allowing you to sell the stock at a higher price than its current market value.
If most investors expect the same cash flows from companies A and B but are more confident that A's cah flows will be closer to their expected value WHICH company should have the higher stock price?
Investors in the company will drive the stock price up for Company A if they are more confident that Company A's cash flow will be closer to their expected value. Company A's stock price will be higher than Company B.
In a what are stock prices higher than their real value?
a bubble
When is the best time to exercise stock options?
The best time to exercise stock options is when the stock price is higher than the exercise price, allowing you to maximize your profit.
What is a stock option and how do you use it?
Stock options allow you to buy stock in a company at a certain price, no matter what the price of the stock is currently. There is usually a time period associated with the offer. Sometimes this could be a sweet deal (if the stock is currently higher than the option) to worthless (if the option price is higher that the current stock price). You also don't have to have the funds to exercise the option, you can have a brokerage company exercise the option, then sell the stock at the higher price, with the difference being your profit.
Is the price of gold higher than the value of the dollar?
The price of gold is ever changing. The stock market for things like this can change from day to day. Gold is more valuable than simply a dollar. It also depends on the weight of the gold.
Why can embedded value per share be higher than share price?
Can you answer this question? "Why can fair price be higher than share price?" The answer would be very similar to both questions.^^
What is the ideal Price Book Ratio?
It should not be more than 1.5. If book value is more than price then margin of safety is there. The share price can be higher than book value but not more than 1.5.
How is it possible for an employee stock option to be valuable even if the firms stock price fails to meet shareholders expectations?
Stock options are in essence the right to buy a specified number of shares at a specified price (known as the "strike price") within a specified period of time. If at any given point the current price of a share of stock is higher than the strike price, the options have value. Both stock price and shareholder expectations tend to fluctuate, and not always in the same direction at the same time, so it's quite normal for the two to be at least temporarily out of alignment. Think of it this way. The value of the options is based on the difference between the current stock price and the strike price, while shareholder expectations are based on what shareholders collectively thought the stock should or would be worth. If a share of stock is worth more than the strike price, but less than the shareholders were expecting, it would result in the situation you describe.
What describes an economic bubble?
stock prices being higher than their real value :)
What is warrant with respect to stock investing?
A warrant is basically a long term equity security. There are no dividends attached to it and all you own is the opportunity to purchase stock at a predetermined price (subscription price). When warrants are issued the price on the warrant is higher than the market price. Because warrants don't expire for a number of years, you can invest in them if you believe the market price of the stock will appreciate. Once the market price has passed the warrant price (given that it has not expired), the warrant will have intrinsic value and you can purchase the common stock at the subscription price and then turn around to sell it at the higher market price realizing a gain in profit. Hope this helps! Jennifer
