0
Stocks
Equity shares of ownership in a corporation that give the holder a claim on the company's earnings and dividends
3,861 Questions
You would sell it for 31 12.
What are the Advantages and disadvantages of keeping stock?
Advantages of high level of stocks are many like it provides a buffer to the companies against the high demands. If the prices of the products are expected to increase in future then a high level of inventory can also give a capital gain to the companies. High level of stocks can also eliminate the risk of fall of supply in the future. Shortages of goods in the market in future can be handled by keeping high levels of inventory.
On the other hand, the main disadvantage of keeping high levels of finished products will increase the costs of the warehouse management. Secondly, if the prices of the finished goods are expected to fall then the company can get the capital loss. Poor inventory management can result in the loss of inventory like obsolete inventory problems.
The objective of investment is to get returns. This is the reason why people will evaluate all the risks involved so as to estimate the return on investment.
What is the price of gm stock in 1989?
Split adjusted, the stock of GM was 41.13 on 1/3/1989 and 42.25 on 12/29/1989. The price ranged from 39.13 - 50.50. A 3 for 2 stock split occurred on 3/29/1989. Use Yahoo Finance's 'Historical Prices' link for a particular stock to recover prices as they were on that date (not split adjusted).
this is done to distribute foodgrains in the difict areas and among the poor people of the societyat a price lower than the market price is known as issue price.
Compare mutual funds and stocks?
A share of stock represents ownership of part of a company. A share of a mutual fund represents ownership of part of a pool of stocks from many different companies. Mutuals are like pre-selected diversified portfolios.
A PE ratio is the price to earnings multiple for a stock. It is the current stock price divided by the earnings per share for the past 4 full quarters reported. So, if a stock is trading at $15 a share, the company earned $5 million dollars over the last 4 quarters and the company has 5 million shares outstanding, then the PE ratio would be 15 (15 / (5/5)).
A low PE ratio then is a multiple that considers the stock cheap relatively, either to all other stocks, to other stocks in its industry, or to its growth prospects.
What would 100 shares of Berkshire Hathaway bought in 1971 be worth today?
Berkshire Hathaway Class A stock closed at $118,000 per share on September 9, 2008. So...100 shares of it would be worth $11.8 million.
What do you do with a stock certificate?
Stock certificates nowadays are mainly used to demonstrate ownership and transfer of ownership to someone else.
What is the stock symbol for Swiss pharmacy company Roche?
Roche is a Swiss company that trades on the Swiss stock exchange. (not NASDAQ, NYSE etc) normally to buy the stock directly on that exchange you would need to go through a foreign broker, or a U.S. Broker with a special account.. and payable in Swiss francs.. typically a broker would require that you have about $50,000 to $100k in your account and the fees would be higher - that stock symbol is ROG.VX
to handle the small U.S. Investor Roche stock is traded as an ADR on the U.S. OTC (over the counter) market that anyone can buy.. there are two stock symbols for Roche RHHBY (the most common) and another one of RHHDY - check with a major broker for the differances or more info on ADR's
technically 4 ADR shares =1 actual share of Roche on the Swiss exchange.. in terms of cost, you will pay a normal broker fee for buying/selling a regular stock + ADR have additional fees for owning the shares... Annual fee is billed to your account yearly of 5 cents per share owned. Divident fee is typically 2 cents a share (it's just reduced from your divident payment) and finally since a bank runs the ADR They charge another 3 cents a share... you also have to take into account the currency exchange between Swiss francs & U.S. dollars.. a weaker dollar would bring higher returns.
Does the enterprise value revenue ratio captures the same thing as the PE ratio?
In short the answer is NO. P/E is a measure of current market value of a common share relative to the annualized net profit or earnings of that share. Enterprise value is essentially the takeover price of the company by adding market capitalization, debt, preferred shares etc. and subtracting cash on the balance sheet. Enterprise/revenue takes this a step further and takes the enterprise value described above and divides by earnings. This is mostly used by investors as a read on cashflows.
There are many sources of capital, main sources are as follows:
1 - short term sources
2 - long term sources
1 - short term sources like banks or financial institutions
2 - long term sources like debt, public issuance etc.
What is the highest price per share of a stock currently?
Berkshire Hathaway Class A stock closed today at $115,000 per share. You buy this stock because it's about as risky as T-bills but it's far more profitable (That is, if you can manage to put together the cash needed to buy it.) This stock is not for the faint of heart; because of its exceptional size, a one-percent loss "costs" you over a thousand dollars. They also have a Class B stock, which is equivalent to one-thirtieth of a share of Class A stock except it has one-two hundredth the voting rights per share of Class A stock. The Class B stock sells for around $4000.
What was the offer price of Scottish Power shares at privatization?
http://www.manweb.com/capitalgainstax2.htm
What was the price of Scottish power on 041404?
Scottish Power (SPI) merged with the Spanish power company Iberdrola (IBDRY) in 2007. You may be able to get an answer at investor.relations@iberdrola.es
What is the tagline of BSE Ltd?
"The Index the world tracks"
source:
http://www.iipm.edu/iipm-editorial-1020.html
second para second last line
Do stocks that don't pay dividends have value?
The value for anything is whatever someone else is willing to pay for it. This is true for baseball cards and stocks that don't pay dividends as well.
http://www.commondreams.org/views/072600-101.htm
this article is 8 years old...one of the few that can answer any questions. the census was preformed 8 years ago....less than 50% of US pop. own any stocks, of those 50%, 20% own more than $50k in stocks...hm 1 in 10 own more than 50k in stocks. I say to hell with wall street!!!
What is the situation when two linear inequalities have no common solution?
To solve a system means to find the x- and y-values for which both of the equations are true. Systems of linear equations can be solved using a variety of methods. One method is to graph the equations as two lines and examine them. If the lines intersect at exactly one point, there is one solution to the system, and the system is called consistent. If the two lines are on top of one another, there are an infinite number of solutions, because each point on the line is considered a solution (this system is called dependent). If the two lines are parallel, there is no solution (this system is called inconsistent). To solve a system means to find the x- and y-values for which both of the equations are true. Systems of linear equations can be solved using a variety of methods. One method is to graph the equations as two lines and examine them. If the lines intersect at exactly one point, there is one solution to the system, and the system is called consistent. If the two lines are on top of one another, there are an infinite number of solutions, because each point on the line is considered a solution (this system is called dependent). If the two lines are parallel, there is no solution (this system is called inconsistent). To solve a system means to find the x- and y-values for which both of the equations are true. Systems of linear equations can be solved using a variety of methods. One method is to graph the equations as two lines and examine them. If the lines intersect at exactly one point, there is one solution to the system, and the system is called consistent. If the two lines are on top of one another, there are an infinite number of solutions, because each point on the line is considered a solution (this system is called dependent). If the two lines are parallel, there is no solution (this system is called inconsistent). To solve a system means to find the x- and y-values for which both of the equations are true. Systems of linear equations can be solved using a variety of methods. One method is to graph the equations as two lines and examine them. If the lines intersect at exactly one point, there is one solution to the system, and the system is called consistent. If the two lines are on top of one another, there are an infinite number of solutions, because each point on the line is considered a solution (this system is called dependent). If the two lines are parallel, there is no solution (this system is called inconsistent).
What are the 3 major theory of dividend policy?
Residual Theory of dividend policy
The essence of the residual theory of dividend policy is that the firm will only pay dividends from residual earnings, that is, from earnings left over after all suitable (positive NPV) investment opportunities have been financed. Retained earnings are the most important source for financing for most companies. A residual approach to the dividend policy, as the first claim on retained earnings will be the financing of the investment projects. With the residual dividend policy, the primary focus of the firm's management is indeed on investment, not dividends. Dividend policy becomes irrelevant, it is treated as a passive rather than an active, decision variables. The view of management in this case is that the value of firm and the wealth of its shareholders will be maximized by investing the earnings in the appropriate investment projects, rather than paying them out as dividends to shareholders. Thus managers will actively seek out, and invest the firm's earnings in, all acceptable (in terms of risk and return) investment projects, which are expected to increase the value of the firm. Dividends will only be paid when retained earnings exceed the funds required to finance the suitable investment projects. Conversely when the total investment funds required exceed retained earnings, no dividend will be paid.
Motive for a residual policy
The motives for a residual policy, or high retentions, dividend policy commonly include:
- A high retention policy reduces the need to raise fresh capital, (debt or equity), thus saving on associated issues and floatation costs.
- A fresh equity issue may dilute existing ownership control. This may be avoided, if retentions are consistently high.
- A high retention policy may enable a company to finance a more rapid and higher rate of growth.
When the effective rate of tax on dividend income is higher than the tax on capital gains, some shareholders, because of their personal tax positions, may prefer a high retention/low payout policy
Dividend Irrelevancy Theory
Dividend irrelevancy theory asserts that a firm's dividend policy has no effect on its market value or its cost of capital. The theory of dividend irrelevancy was perhaps most elegantly argued by its chief proponents, Modigliani and Miller (usually referred to as M&M) in their seminar paper in 1961. They argued that dividend policy is a "passive residual" which is determined by a firm's need for investment funds.
According to M&M's irrelevancy theory, if therefore does not matter how a firm divides its earnings between dividend payments to shareholders and internal retentions. In the M&M view the dividend decision is one over which managers need not agonies, trying to find the optimal dividend policy, because an optimal dividend policy does not exist. M&M built their dividend irrelevancy theory on a range of key assumptions, similar to those on which they based their theory of capital structure irrelevancy. For example they assumed:
- Perfect Capital markets, that is there are no taxes, (corporate or personal), no transaction costs on securities, investors are rational, information is symmetrical - all investors have access to the same information and share the same expectations about the firm's future as its managers.
- The firm's investment policy is fixed and is independent of its dividend policy.
The essence of the bird-in-the-hand theory of dividend policy (advanced by John Litner in 1962 and Myron Gordon in 1963) is that shareholders are risk-averse and prefer to receive dividend payments rather than future capital gains. Shareholders consider dividend payments to be more certain that future capital gains - thus a "bird in the hand is worth more than two in the bush".
Gorden contended that the payment of current dividends "resolves investor uncertainty". Investors have a preference for a certain level of income now rather that the prospect of a higher, but less certain, income at some time in the future.
The key implication, as argued by Litner and Gordon, is that because of the less risky nature dividends, shareholders and investors will discount the firm's dividend stream at a lower rate of return, "r", thus increasing the value of the firm's shares.
According to the constant growth dividend valuation (or Gordon's growth) model, the value of an ordinary share, SV0 is given by:
SV0 = D1/(r-g)
Where the constant dividend growth rate is denoted by g, r is the investor's required rate of return, and D1, represents the next dividend payments. Thus the lower r is in relation to the value of the dividend payment D1, the greater the share's value. In the investor's view, according to Linter and Gordon, r, the return from the dividend, is less risky than the future growth rate g.
M&M argued against this and referred to it as the bird-in-the-hand fallacy. In their irrelevancy model, M&M assume that the required rate of return or cost or capital, r, is independent of dividend policy. They maintain that a firm's risk (which influences the investor's required rate of return, r) is a function of its investment and financing decisions, not its dividend policy.
M&M contend that investors are indifferent between dividends and capital gains - that is, they are indifferent between r and g is the dividend valuation model. The reason for this indifference, according to M&M, is that shareholders simply reinvest their dividends in share of the same or similar risk companies.
Dividend Signaling Theory
In practice, change in a firm's dividend policy can be observed to have an effect on its share price - an increase in dividend producing an increasing in share price and a reduction in dividends producing a decrease in share price. This pattern led many observers to conclude, contrary to M&M's model, that shareholders do indeed prefer dividends to future capital gains. Needless to say M&M disagreed.
The change in dividend payment is to be interpreted as a signal to shareholders and investors about the future earnings prospects of the firm. Generally a rise in dividend payment is viewed as a positive signal, conveying positive information about a firm's future earning prospects resulting in an increase in share price. Conversely a reduction in dividend payment is viewed as negative signal about future earnings prospects, resulting in a decrease in share price.
DIVIDEND AS A RESIDUAL
There is school of thought which regards dividends as a residual payment. They believe that the dividend pay-out is a function of its financing decision. The investment opportunities should be financed by retained earnings. Thus internal accrual forms the first line of financing growth and investment. If any surplus balance is left after meeting the financing needs, such amount may be distributed to the shareholders in the form of dividends. Thus, dividend policy is in the nature of passive residual. In case the firm has no investment opportunities during a particular time period, the dividend pay-out should be 100%.
A firm may smooth out the fluctuations in the payment of dividends over a period of time. The firm can establish dividend payments at a level at which the cumulative distribution over a period of time corresponds to cumulative residual funds over the same period. This policy smoothens out the fluctuations of dividend pay-out due to fluctuations in investment opportunities.
How do you find out if you own any stocks?
if you are a pubilicly held company you are if your not than you don't have stocks
