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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

What is Difference between issued shares and outstanding shares - 41k?

Issued shares(I) are shares of stock that have been sold to investors. It includes both outstanding shares(O) and Treasury shares(T).

Thus, I = O+T

Outstanding shares(O) are shares of stock currently owned by the shareholders.

Why does the value of a share depend on dividends?

One of the most commonly made mistakes is that people relate the dividends paid to the financial health of the company. Let me say that more dividends paid does not mean comapny is doing good and vice versa.

Generally, if the company pays less dividend because it requires that money for a new project which in turn will add to company growth. Thus stock price increases. If company does not have any new projects and still cut on dividends than stock price may go down.

In short, if company can grow faster than the markets than it should give less dividends. However, if company is growing slower than the markets than it should give more dividends so that people can invest in markets and earn more. If comapny does not follow this logic than its stock price reduces.

How does the fair value and equity methods of accounting for investments in stocks subsequent to acquisition differ?

Under the fair value method, investments are originally recorded at cost and are reported at fair value. Dividends are reported as other revenues and gains. Under the equity method, investments are originally recorded at cost. Subsequently, the investment account is adjusted for the investor's share of the investee's net income or loss and this amount is recognized in the income of the investor. Dividends received from the investee are reductions in the investment account.

Why can't Jim cramer own stock?

I believe that the sec caught him in a financial trading scandal years ago so he was banned by sec to own any stock for life, it was hard to prove so no jail time but the ban ... so he has a family trust for which he can advise. The only ways for him to make money on the stock market is for him to sell his books and his newsletter oh dont forget speaking engagements. Please only use him for entertainment purposes, he is a funny guy back when kudlow and kramer were a team he stole the show, and i agree with him on some of his macro economic postions, but for the most part your picks are better than his, seriously.

Answer:

Cramer is under no such SEC ban.

Since 2004, CNBC policy is that no member of the news staff or management, as well as their spouses and dependents, may own stock or bonds of any individual company. They may, however, own mutual funds or ETFs. Part-time employees (including "CNBC contributors") are covered by restrictions in their contracts. When K&C was on the air, Cramer was considered part-time, but he is now on the staff.

Good financial websites in India?

1.moneycontrol.com is best for Indian stock market news an updates.

2.finsai.net leads you to the best financial sites of the country. Visit to your bank and many other financial destinations of the country including moneycontrol.com

How much does it cost to buy a seat on the NYSE?

NYSE membership prices range, depending on various factors, its all time high was valued at $2.70 Million in 1999, however has dropped since, there are 1,366 seats in the NYSE.

What does stock mean?

Bearish contrasts with bullish. It means that stock has a downside momentum/bias to it, meaning the price action is controlled by sellers, which are "dumping" the stock causing its price to tank.

There comes a time, known as support level where buyers regain control and you get an upside momentum again.

Can a company issue free shares?

Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct treatment!

Public company without share capital?

Nope. That's not going to happen, well not for long anyway!

Why couldn't a company exist without shareholders or owners? If the company has shares outstanding worth a million dollars, the company can take out a loan or issue bonds for a million dollars and buy the shares back. Then, once the loans/bonds are paid back the company exists as an independent entity not beholden to anyone for it's existence.

What is the difference between a buy and sell in the stock market?

The stock market is kind of like a big yard sale... The sellers want to sell their stock for as much as they can get and the buyers want to pay as little as possible.

The buy is the price that a buyer wants to pay and the Sell is the amount the seller wants to sell at. When the two prices match is when a trade happens.

What is dominion Virginia power's stock symbol?

Dominion Virginia Power is actually "Dominion Resources, Inc" and their stock symbol is "D"

Regards,

John Barrington

What is the difference between public and private stock?

Private stock is issued by a private company. It is hard to get into a private company so unless you know someone, you probably won't have the opportunity to invest. Information about the company and access to the stock is not subject to the rules of the SEC so the company is not obligated to share financial information. There is no PE on private stock because the market has no influence over pricing. You may also have trouble trying to sell your shares. Private companies control the number of shares, who can buy them, when and if you can sell them and at what price. The company will be the one to buy back your shares and redistribute so you have little control, if any. In my experience, you have to know about the plans for the private company and trust the owners and hope they meet their goals - increasing the value of your shares. Sometimes companies are private because in order to become public they need to have a certain amount of money in the bank and are striving for enough capital to get there. For others the goal is to build enough value in the business to sell it for a substancial gain at which point you would benefit incrimentally. For most investors, this is not a good way to go. Public stock means a company has basically sold a portion of itself to the public by offering shares in the business. In becoming "public", these companies are obligated to the rules of the SEC and have to report all financial information on a regular basis. You have the opportunity to study the company, market conditions, PE etc in hopes that if you invest, your share price will go the right direction. You can also buy and sell at market value through a broker. Either way - it's gambling.

How does stock price affect a company?

In the strictest sense of the word, not much. As long as the company does not run out of cash, then its stock price is irrelevant to the company's operations. However, stock price is a reflection of what the market thinks the company's equity is worth, and this has implications. So, here are some scenarios: If the stock price undervalues a company's equity... it will tend to attract buyout offers and hostile takeovers as people take advantage of the stock's low price. Also, investors will be unhappy with the stock performance and the CEO will not collect large bonuses. So CEO turnover is another symptom of a low stock price. And finally, underpriced stock will also tend to be "bought back" because the company views it as a good investment. If the stock price overvalues a company's equity... the company will be more prone to using its stock to acquire other companies. Stock buyback become less attractive, and it becomes very expensive for the company to be acquired.

What was the stock symbol for Atlantic Richfield?

Atlantic Richfield was acquired by British Petroleum and now trades under the symbol BP on the NYSE.

What is the largest one day increase on a percentage basis for any one stock?

This is difficult to determine, and there have been some enormous percentage increases for ultra cheap stocks on the over-the-counter exchanges.

But, the biggest percentage gainer for an IPO is VA Linux in 1999. It was priced at $30 a share and then ended the trading day at $239.25, a 698% gain.

Meaning of brokers in trading system?

A broker is a certified, licensed individual who carries out trade orders for investors. He or she buys or sells stocks or other securities on behalf of other investors.

Cumulative preference shares?

cumulative preference shares are those shares which get dividends for the current year and for the all previouse years if they were not paid due to the bad position of the compnay. suppose compay was suppose to pay dividends @ 10% every year to cumulative shares holders but could not pay fro two years due to bad financial position, and in the current year company is stable and willing to pay, so company will pay previouse + current year dividends to cumulative share holders, if it was non-cumulative share hoders compay would not pay all dividend, but it would pay only current year dividend. this is the difference between cumulative and non cumulative shares with respect to dividend payment.

conculsion:

cumulative gets all dividends if not paid earlier due to financail crises(previouse+ current)

non cumulative gets only current dividend and not previouse dividend if not paid due to financial crises ( only current year dividend and all previouse are not paid)