An increase in demand for the company's stock
Watered stock is stock that is issued with a price that is much higher than the issuing company's assets. Watered stock can be stock that is overvalued due to excessive issuing or inflated accounting values.
Initial public offering
The stock performance and value is what communicates and indicates the companys intended value to the general public. Then the information is used to invest or sell in the value of the instruments.
* If a share value goes up, company can reissue stock at a higher price * Companies love high share price, as this will help them look good to creditors, suppliers and partners. * Remember company's employees are also investors in the company (through stock options, stock purchase plans), hence this benefits companies as well
There isn't really a "discount rate" for stock. You buy at the share price. Here's an online broker that can hook you up: http://www.oneshare.com/stock.aspx?stock=pepsi
An increase in demand for the company's stock
Annual profits decrease
Answer : Its profits increase. Explanation : When a company is more profitable, it's stock is in higher demand, and higher demand means a higher price.
The price of the stock is sharply higher.
When a stock is sold at a higher price than the purchase price, it is called a capital gain.
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.
The ask price is higher than the stock value because it represents the price at which sellers are willing to sell their shares, while the stock value is determined by market factors such as supply and demand.
The best time to exercise stock options is when the stock price is higher than the exercise price, allowing you to maximize your profit.
if a companys stock prices goes up and nothing else changes, the required rate of return should
You can profit from a decrease in the price of a stock by selling to open a put option because you receive a premium upfront for agreeing to buy the stock at a specific price in the future. If the stock price decreases below the agreed-upon price, you can buy the stock at the lower market price and then sell it at the higher agreed-upon price, making a profit.
Stock dividend yield is a ratio useful in stock analysis. It is calculated by this formula: dividend per stock/stock price*100% In some cases the divisor in the formula may differ. Instead of the current stock price, it may be the price an investor purchased the stock at, or it may be the price when the dividend was paid.
It's profits are increased.