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Stocks
Equity shares of ownership in a corporation that give the holder a claim on the company's earnings and dividends
3,861 Questions
How does a stock buy back work?
The board of directors for a company will announce that they have decided to buy back their own shares from the current outstanding shares and then retiring those shares. A Company may do this for several reasons but the main reason is to increase the value of the stock price for the share holders.
If a company has 10 million outstanding shares and a current stock price of $5/share (keep in mind the market cap would be $50 million). The company announces that the board has authorized the repurchase of 5 million shares. Then the company will typically buy those shares back throughout the year(or whatever time frame) reducing the outstanding shares to 5 million from the initial 10 million. Let's say that miraculously the company was able to purchase all 5 million shares at $5/share. So they spend $50 million buying back the stock. If I was wealthy shareholder and own 1 million shares of the company then before the buyback I owned 10%(my shares / total outstanding shares....1 milliion/10million) of the company. After the buyback there are now 5 million shares so I own 20% (1 million / 5 million) of the company. If the stock remains at $10/share after the buyback then the the market cap is now 25 million, but if shareholders thought the value of company was worth 50 million before the only thing that has changed after the buyback is the number of outstanding shares. So that means the price should increase to make the market cap go back up. So the idea is when a company buys back stock they increase the value of each share to the shareholder by increasing their ownership in the company. In our case the price of the stock should now be $10/share making the market cap 50 million again ($10/share x 5 million shares = $50 million). So buybacks are an alternative to dividends as a method for a company to return value to the shareholders.
Companies raise capital money for running and expanding their businesses from the public and other institutions. They allot shares of the company to them in return. The shares have certain monetary value. Depending on the performance of the company, the share price goes up or down. The holder of the shares can buy or sell the shares through a stock exchange, this is known as Sharemarket.
Why might a corporation use a special category such as founders stock in issuing their common stock?
To assign special priviledges to those shares.... be it voting rights, par value, etc. (Only possible with a C Corporation, multiple classes of stock are not permitted with S-Corporations).
Stock charting is a form of technical analysis used to display graphically the price behavior of a financial stock, index, commodity or anything that changes in price over time. There are many different types of stock charts. The basic form is known as a “bar chart” which displays the high, low and closing price of the stock or other financial instrument the chart is tracking. Other forms include “candlestick” charts, said to originate in Japan in the 1970s, and “point and figure” charts, a somewhat arcane type of charting used by some technical analysts. Stock charts can track prices over any period, ranging from seconds to decades and even longer, so long as a verifiable price record is available. Stock charting and technical analysis is widely used by finance professionals and individuals, though its actual value as a forecasting tool is still somewhat in question. Stock charts do however, provide a visual prospective of price behavior over a given time period, considered by many investors as quite useful in determining the value of a stock, financial index or any commodity with a record of price changes.
No
In the US a stock broker is actually a salesperson who works for a company that buys and sells financial securities in stock and bond markets. Other financial instruments can be options or commodity futures. The job of a stock broker in the US is to give advice to clients that wish to participate in the financial markets. The salesperson makes money by earning a fee from his company with each trade his or her client makes. The term "broker" is misleading in that the actual buying and selling of stocks for example, are done by traders on the floors of various stock markets.
In simple language, stocks are shares in the ownership of a companies. Stocks represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.
In the late 1800 farm profits decline because?
In the late 1800, farm profits declined in part because of the demand for farm produce declined.
What is the definition of a stock on sale?
I think you are referring to value priced stocks. They are stocks that are cheaper than they ought to be for some reason. In other words, their value is more than the value they are selling for. That would be like buying something on sale, right?
THIS PART IS ADDED TO THE ANSWER ABOVE!!!!
It is the repurchase of a previously bought stock.
-Ov nick 11
Do you need a stockbroker to buy stocks and if so how does that work?
you can go thru a stock broker but you can go on line to the numerous sites Ameritrade ect. and pay a small fee to purchase your own stock. but it is helpful to get a stock broker if you have never done this before.
The answer to the original question is, yes you must buy stocks from someone with a broker's license. There are several kinds of them.
The classical broker is the Full Service Broker. If you deal with full-service brokers, they do all the things brokers are known for--researching stocks, making recommendations, and performing stock transactions.
There are also discount brokers. Ameritrade, Scottrade and the other online brokers are discount brokers. These are for people who know how to figure out what they want.
And finally, some corporations have programs for people who already have stock in the company; those are also brokerages but not everyone can buy from them.
Addition toTechnically a stock broker (person with a broker's license) is involved in the process for it to be legal. Their are almost 2000 corporations in the US that have Direct Stock Purchase (DSP) plans or Dividend ReInvestment Plans (DRIP) or both. Although a broker is in the chain, the purchaser pays no commissions and has contact only with the plan's administrator. There are many DRIP plans that require you to already own stock before you can participate BUT there are also many that will let you make your initial purchase within the plan. Over the past 40 years I have built an excellent and diverse personal stock portfolio and I have never paid one penny directly to a stock broker. Addition to :Several brokers today, have their online broker portals. Everything is managed through online trading. They have their registered license numbers posted on their respective online portals. They open a Demat account for you, which is the first step towards allowing you to trade online, monitor your accounts, update or transact through online trading. They help you create a portfolio that is individual to your specific needs and which meets your investment criteria. There are ample details, technical ones included, which they consider before they invest your money. Regular updates, news feeds, best stock options, good performers, reports, etc., are also available at a nominal subscription to their broker portals. Stay aware and choose a broker with good credibility.
Why do men that are not financially stable back away from women who are financially stable?
Most men feel like they should be making more money than women. This might be due to pride or concern for the woman.
What is the expected dividend if the you pay 1.00 an the dividend earns 4 percent for 3 years.?
Data: current dividend= 1 Growth = 4% time period= 3 years solution dividend for first year= 1*(1+0.04) Expected Dividend for first year= 1.04 dividend for second year= 1.04(1+0.04) Expected dividend for the second year =1.082 dividend for third year= 1.082(1+0.04) Expected Dividend for Third Year = 1.124
- Common stock
- Preferred stock
Common stock is usually what is issued to the general public. The term common Stock doesn't carry any negative connotations, but rather indicates that it is the "standard" stock the company has offered. Common shareholders have voting rights.
And as the word suggests, "Preferred" stock has certain advantages over common stock.
First, preferred share holders are paid dividends on their stock market investment before common share holders. And if a company isn't doing well, the Common stock dividend is eliminated first.
Second, is if a company goes out of business, the owners of preferred shares have prior claim to any assets that remain when the company is dissolved and after bond holders and other creditors have been paid.
Owners of common stock are the last in line to pick up the pieces of the fallen corporation.
How much stock bhp does a 1995 integra gsr have?
Manual Transmission equipped cars have 170 h.p. A/T equipped cars have 142 h.p.
Share capital is cheap source of capital as it requires to be paid in last after payment of all other liabilities as well.
Difference between share capital and owner equity?
Owners equity is that portion of capital which is invested by actual owners of business while share capital is that portion of capital which is invested by third parties or investors in business like general public etc.
Why do organized exchanges have minimum requirements?
When investing in the OTC(Over the counter) if you do not have experience on either of these exchanges you must meet various minimum requirements.
Ultimately, a corporation is run by a board of directors. This group of people are usually experienced business people, and may or may not have a large vested interested in the corporation.
Is there a list of Medallion Signature Gaurentee Locations?
There isn't an official list of locations. The garuntor assumes responsibility for such services, therefor the transfer institution only provides locations for members individually.
Is there any disadvantages to issuing shares?
By issuing shares you have sold a piece of the company to investors. Some of the disadvantages include: you will be answerable to the investors and you will have to disclose company information to them that you would have preferred your competitors didn't know.
What time do the asian markets close?
The Asian stock market typically closes at 8:00 PM in Asia's time. They then reopen the next day at 9:30 AM.
