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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
Why does the price of a stock open the following day higher or lower?
Not all trading contracts have finished when the bell goes. It can sometimes take a few minutes for them to end.
What is the ticker symbol for Citibank preferred stock?
Using MSN, enter the symbol C- and you can see them all.
How to become a penny stock company?
The over-the-counter bulletin board (OTCBB) is a regulated quotation service for over-the-counter (OTC) securities. The securities that are listed on the board are not ones that are traded on the Nasdaq or any other securities exchange; therefore, a company is not "listed" on the board, just quoted.
Although companies must adhere to certain listing standards in order to maintain their listing on the major exchanges, companies issuing OTC securities do not have to meet these standards. The only stipulation the OTCBB has identified is that any company that has an OTC security quoted on the board must not be delinquent in its filings to the Securities and Exchange Commission.
Trading done on OTC securities is very similar to that done on any other exchange. An investor must first open an account with a broker who puts in buy and sell orders on different OTC securities. Market makers then ensure that the trades go through at the quoted price and volume.
Before a company can post a quote for its OTC security, it must first recruit a market maker to sponsor the issue. Only market makers are allowed to apply to have a quote listed on the board and only one market maker is needed per security issued. Because the securities are technically not listed on the OTCBB, the issuing company does not have to pay any fees to have its shares quoted. Market makers, however, must pay a fee of $6 per security per month for all of the securities that they quote on the board.
Under National Association of Securities Dealers rules, market makers are not eligible to receive any payment for issuing shares of the companies they sponsor. Instead, market makers make money on the spread between the bid and ask price that they quote on the board.
Read more: http://www.investopedia.com/ask/answers/06/listonotcbb.asp#ixzz1f3xO4eF0
Why is beta the correct measure of a stock riskiness?
Beta measures a stock's volatility (the swings up and down in price). The market as a whole has a beta of 1.0, but each stock is determined a beta value from a history of it's stock movements. Riskiness equates to the stock losing value and high beta stocks are more prone to falling faster.
What are the major benefits of security exchanges?
They make stocks, bonds etc liquid investments so you can buy them or sell them easiliy and at a more fair price. They provide information about the value of any single security at that moment in time. They make people more confident in investing because the investor knows it's reasonable to expect (s)he will be able to sell at a fair, but perhaps unpleasant price. First and last redundant I guess./
How does the goal of stock price maximization benefit the society at large?
The society benefit through
consumer benefit
employee benefit
There are two ways to answer this: Short and Long.
First, short:
PE = PPS/EPS ; PE = 20(EPS) as well.
Substituting 20(EPS) for PE gives:
20(EPS) = PPS/EPS ; Multiply EPS on both sides to eliminate the fraction on the right side:
20(EPS)2= PPS
So, Price per share = 20 times Earnings per share2
Long way:
EPS = EAC/#shares ; Since we know EAC, it becomes EPS = 48,000/#shares
Since PE = 20(EPS) using what we got from the short way, we can subsitute the EPS fraction into the left side:
20(48,000/#shares) = PPS/(48,000/#shares) ; Of course we would simplify it a little bit, multiplying 20 and 48,000 and multiplying the inverse of the denominator:
960,000/#shares = PPS * #shares/48,000 ; Multiply 48,000 on both sides and get:
46,080mil/#shares = PPS * #shares ; Multiply #shares on both sides and get:
46,080mil = PPS * #shares2 ; Finally, divide by #shares2 to isolate PPS and you get:
PPS = 46,080mil/#shares2
So, you have PPS = 20(EPS)2 or PPS = 46,080mil/#shares2
Either way, you can't get a number answer because of the lack of data on the number of shares. If we had the number of shares outstanding, it would be pretty easy.
I know it's an old question, but still, if anyone has a better way or a correction to make on what I did, feel free to do so.
Stock prices are largely driven by investors expectations of its future earnings.
So if prices go up, you could simply say that its because more investors are positive about the relevant companys' earnings.
Please note that the stock marketis highly complex, and there is no "one way" of reading the price.
For the layman, I would simply say that its an issue of supply and demand. If there are more buyers than sellers, then prices go up. Vice versa.
/BL
Share of corporations profits paid to the corporations stockholders?
Between 40 and 90 percent of profits go to stock holders as Dividends. This mostly depending on how corporate by laws set up the corporate organization, also what type of federal welfare the corporation takes part in can also play a part.
Oh forgot! Reinvestment of profits also plays a major factor in determining shareholder reimbursement.
Labor both skilled and non-skilled plays no part in profits as they are fully regarded as an expense.
What are some examples of Consumer Staples stocks?
* Colgate-Palmolive (NYSE: CL)
* Altria Group Inc. (NYSE: MO)
* CVS Caremark Corp. (NYSE: CVS)
4.8%
What is the difference between BRK-A and BRK-B?
The class B stock is 1/30 of a berkshire A stock. its exactly the same except you don't have as powerful of voting rights and other than that its simply 1/30 the value of a regular A stock
Why is 5-dollar level so important in stock investing?
Perceived Risk - There are almost no companies that have gone public at a price below 5-dollar level. Thus, for a company that trades under $5 there is a big chance that some serious operational or financial problems have accrued in the past or recently, and there is plenty of statistics suggesting that $5 stocks frequently go to zero.
Margin - Margin is a line of credit given to an investor so that they may make investments in amounts larger than their current funds would allow. This allows investors the ability to leverage their current holdings and make larger investments hoping that the return will be larger than the interest for the loan. These investors are taking on a larger amount of risk and so are the firms that loan the funds to the investor. Because of this most firms deem stocks under 5 dollars to be unmarginable. This means that they will not extend a line of credit on investments that are trading at less than 5 dollars. They do not feel that a stock trading under 5 dollars is good collateral. Some set the mark higher or lower but 5 dollars is the most common. They do this because of the higher risk associated with lower priced stocks. Brokerages worry that they may not be repayed if substantial losses are realized in a short period of time. These facts make unmarginable stocks or stocks trading under the 5 dollar mark less attractive to the investment public including institutional investors and hedge funds.
Penny Stock Notoriety - A "penny stock," according to SEC interpretation, is an equity trading for less than $5 a share that is not traded on the listed markets of the NYSE, AMEX, or NASDAQ. This perception of riskiness in sub-$5 dollar stocks outside the major exchanges has definitely influenced the perception off all sub-$5 stocks, even those highly liquid and more transparent exchange traded stocks.
Note: Many consider penny stocks to be stocks that trade for less than a dollar which are listed in cents (pennies) as in .87 cents or pennies.
Institutional Investors - Many mutual funds' charters directly prohibit their managers from investing or holding penny stocks (those traded on the OTCBB and pink sheets) and generally stocks under $5 dollars. However, mutual funds are not obligated by any regulations to have such clauses and there are mutual funds that specialize in penny stocks.
Government Influence - To the extent that municipal, state, or federal pension funds' charters might prohibit their managers from investing in stocks (or holding stocks) below 5 dollar level, we can talk about government involvement in discouraging investments in stocks trading below $5.
Retail Constraints - Many brokerage houses and investment professionals strongly discourage trading in speculative stocks. Often their customers must sign extra paperwork acknowledging that they are aware of the risks of trading such stocks.
See the related link below for an interesting article on the subject.
What is intracompany stock transfer called?
Intra stock transfer means cross company stock transfer EX. IPCL&IOCL
Will Washington Mutual stock go up?
Since Washington Mutual has declared bankruptcy, the likelihood of the company's stock of going up is extremely small. Most often, common shareholders will receive nothing for their shares as the company reorganizes it's financial structure.
