Three reasons:
First is because they like the company for non-financial reasons.
Second, and most commonly, is because they believe they can make a profit with the stock.
The third one will take some explaining: You can buy a stock to intentionally lose money on it. This is all tax. To calculate your capital gains tax, you add up all the money you made selling stock, then subtract all the money you lost on it and send them fifteen percent of the remainder. Under the immutable law that says a rich person would spend $10 to save $1 on tax, this makes sense. The logic of actually doing it escapes me; every $100 you intentionally lose is only going to save you $15 on your taxes, which is why the feds aren't super worried about people doing it.
Stock Exchange in any country serve one basic objective
That is
Funding to companies listed on that stock exchange.
Companies float their IPOs on exchange and in return give buyers right of ownership and annual dividends(sometimes twice a year).
Companies sell their right of ownership to traders/investors/FIIs etc and in return generates capital for their companies.
Stock Exchanges also attract lots of FIIs which is good for country economy.
What is the Difference between regional stock exchange and bse?
The BSE is a national stock exchange - meaning it is common to all residents of the country. (Note: There is a separate exchange called the National Stock Exchange. The term national is used to stress on the fact that, the exchange is available nation wide)
A Regional stock exchange is usually located in a particular city and is open for trading only to the residents of that particular city/state which makes it inaccessible for other investors who do not reside in that region.
Can you invest 1 in the stock market?
In theory you can, the problem is that most brokers will require you to fund your account with a minimum amount of money, which is usually well above $1.
Another problem is that when you buy or sell a stock you must pay a commission to your broker, that ranges between $4 and $15 per trade. This means that when you buy you pay a commission and you do so as well when you sell.
Therefore, there is nothing much you can do within the stock market with $1.
Why earning per share is important for stock investors?
EPS is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
EPS is calculated as
(Net Income - Dividend given to preferred share holders)/Average No. of outstanding shares
The EPS is helpful in comparing one company to another, assuming they are in the same industry, but it doesn't tell you whether it's a good stock to buy or what the market thinks of it.
But, ideally speaking, the EPS is a good indicator of the company's performance and in most cases where the company has a solid EPS over a considerable period of time, we can consider investing in that company.
What would 100 shares of wal-mart stock bought in 1970 be worth today?
Walmart stock first came on the market in 1970. If a person had purchased 100 shares of Walmart's stock in 1970, they would be worth around 35 million dollars today.
Difference between cycle stock and safety stock?
Cycle stock and safety stock are both goods a company holds to supply to customers but the cycle stock is used for immediate orders while the safety stock is held to meet the fluctuations in demand. The two kinds of stock are usually stored in separate areas of a business.
A lot of people invest in the stock market. Some are:
* Institutions & companies * Mutual fund houses * Individual investors (common man) * HNIs (High Net Worth Individuals) * Banks * etc...
What causes a decrease in earnings per share mean?
Earning per share(EPS) is counted by dividing the total earning with total number of shares of the particular company.
EPS increases when total earning of the company increases in any financial year. Opposite to that is decrease in EPS.
On the other ways, if total number of shares of the company increases then the earning gets divided among many shares and consequently there is seen reduction in EPS.
How the total no. share may increase ? It may be so in some of the following ways;
1. Follow up public offer(FPO)
2.Bonous share allotment
i.e. in the ways through which the total no. of shares increases on condition that if earning remain same.
by
http://investmentrick.blogspot.com
What was the price of Kraft stock on February 12 2009?
25.47 Their stock symbol is KFT, in case you were wondering.....
1998 ford stock price per share?
Around that time Ford stock went to over $69.00 and then split, after split value was less but very strong.
Ford reached a high of 65.94 in 1998 just before paying a 12.07 per share Dividend. If you were to adjust for Dividends, split and recapitulation that share price would be appx. $20.
The what percent is found by dividing the annual per share dividend by the closing price per share?
Yield
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How is the book value of a stock determined?
Book value in financial terminology refers to the value of an asset.
In case of stocks it can be considered as
The net assets of the company / no. of shares
For ex: If ABC limited has 100,000 shares and it has net assets of 10,000,000 then the book value of each share of ABC limited would be 100.
Is lower P E advisable for investments?
The PE ratio is a valuation metric that compares a company's price-earnings ratio with its projected growth rate. Small, high-growth stocks generally trade at higher PE's compared to the Large-caps. If the PE ratio is around 1, the company is considered fairly valued. A PE ratio that is much higher than 1 indicates an overvalued company, and a PE below 1 indicates an undervalued company. While the PE ratio can effectively provide insight in certain evaluations, it is limited by its overriding focus on earnings growth. Revenue growth, cash flow, dividends, debt, and numerous other factors are also critical in determining value. Additionally, while PE is useful for smaller companies it may be misleading for big-caps, since sustained growth is less important to their total returns. PE is most useful when supplementing a thorough discounted cash flow analysis or relative valuation.