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If the investor sells the entire investment or any portion of it ,the equity method is applied consistently until the date of disposal.A gain or lss is computed based on the adjusted book value at that time.Remaining shares are accounted for by means of either equity method or the fair-value method , depending on the investor's subsequent ability to significantly influence the investee

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When a company goes public it begins doing?

Selling shares of stock


What does going public mean for a company?

A company goes public when shares in that company are offered for sale (floated) on a stock exchange somewhere in the world. At that point the ownership (or a share of the ownership) of the company passes to the people purchasing those shares - the public! Before this flotation the company will have been owned privately and the flotation produces funds which goes to these owners as they are in effect selling their property.


What is Mission and vision of Yamaha company?

To be the market leader, a occupy a huge amount of shares.


Who is a market maker?

Market makers- These are investment banks (eg Goldman Sachs) that partake in IPO's (initial public offerings) An IPO is done when a private company wants to 'go public', they ask investors and fund managers to buy shares in a company, when the company has fully, or nearly fully sold out then they launch the company on to the stock market. Another aspect market makers do is to generate more equity in a company, they do this buy issuing more shares in a company, effectively diluting the value of the other shares. In order to stop existing shareholders being annoyed by the decreased value of their holding they offer them the right to buy the shares (take up their rights) or to receive free shares to compensate them.Stockbrokers- Buy and Sell shares on behalf of investors. They can control the price of companies by waiting and mass buying or selling shares which can effect the price drastically.Fund Managers- these include unit trust, OEIC (open ended investment companies), Hedge Funds and Investment Trust managers. They manage trillions of assets on behalf of investors and in extreme circumstances can cause the rise or fall of a company in a matter of hours.


When people want invest in the stock market they buy?

They buy shares of a company's stock. Each individual stock is ownership within that company. What they actually buy in terms of types of companies is totally dependent upon their individual preferences. That may be a tech company like Apple, a health company like Johnson & Johnson, or a motor vehicle company. Each company's stock has an individual price based on company performances, earnings, market trends and other factors. When you finally buy a company's stock whether 1 or 1,000,000, you own a portion of that company. The total value if your investment is stock price * number of shares. So if you buy 1,000,000 shares at $10 your total value is $10,000,000. The price of a stock will fluctuate up and down and the value of your investment will reflect that.

Related Questions

What happens to my shares if a company goes private?

If a company goes private, your shares may be bought back by the company or by a private investor. This means you may no longer be able to trade your shares on the stock market.


What happens to your shares when a company goes private?

When a company goes private, your shares are typically bought back by the company or by a private investor. This means you no longer own a stake in the company and cannot trade your shares on the public stock market.


How does an investor get ownership interest in a company?

by purchasing shares in the company


What are shares?

A share in a company gives you as an investor a share in its dividend.


Is an investor the same as a shareholder?

Nearly yes. An investor for a company is someone who has invested in the company. He may be someone who bought Bonds issued by them or equity shares issued by them. If he has bought equity shares from them, then they are both same.


An investor injects capital in to a private limited company. how are they paid back?

Whether the investor would receive shares is subject to the investment agreement. If shares are given they would normally be granted based on the value of the investment as a percentage of the value of the company.


How do you determine the number of outstanding shares for a company?

To determine the number of outstanding shares for a company, you can look at the company's financial statements or check with the company's investor relations department. The number of outstanding shares represents the total number of shares of stock that have been issued by the company and are held by investors.


How can one determine the number of outstanding shares for a company?

To determine the number of outstanding shares for a company, you can look at the company's financial statements or check with the company's investor relations department. The number of outstanding shares represents the total number of shares of stock that have been issued by the company and are held by investors.


How can I determine the number of shares outstanding for a specific company?

To determine the number of shares outstanding for a specific company, you can look at the company's latest financial statements or annual report. The number of shares outstanding is usually listed in the "Capital Stock" section or the "Equity" section of these documents. You can also check the company's investor relations website or contact their investor relations department for this information.


Difference between bonds shares and mutual funds?

The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.


What are dormant shares?

Dormant Shares are shares which are inactive, it may be the shares of InactiveCompany (Dormant Company)orThe shares which are Closely held by companies, these are more stable than other companies.Share prices of Dormant shares are determined by the company's value and not by investor sentiment.- Sudheer Koppala


Who are equity shareholders?

Equity shareholders are investors that own the shares of the firm. As an investor you need to pay to get ownership of the shares. The shares are either bought from another investor, or from the firm, when the shares are issued.