Factors affecting share prices, Finance Basics

Factors Affecting Share Prices

The entire sorts of influences affect share prices. These influences involves as:

1. The current profit record of the company particularly the current dividend paid to shareholders and the prospects of their stability and development.

2. The development prospects of the industry whether the company operates.

3. The publication of a company's financial conclusions that is Balance Sheet and loss and profit statement.

4. The general economic situations as like boom and recession as like throughout boom, firms would have high profits thus rise in prices.

5. Change in company's management as like entry and exit of prominent corporate personalities.

6. Change on Government economic policy as like spending, monetary policy, taxes so on. These alterations influence investors' expectations.

7. Rumour and declarations of impending political changes as like General elections and new president will reasons uncertainty and anxiety and adversely affect share prices.

8. Rumours and declarations of mergers and take-over bids.  Whether the shareholders are offered generous terms or prices in a take-over, share prices could increase.

9. Industrial relations as like strikes and policies of other firms.

10. Foreign political improvements where the economy heavily depends upon world trade.

11. Changes in the rate of interest on Government securities as like Treasury Bills may create investors switch to them. Exchange rates will discourage or encourage also foreign investment in shares.

12. Declarations of good news as like such a main oil field have been struck or a main new investment has been undertaken. The NPV of that investment would be reflecting in share prices.

13.  The visions of expert's like articles by well-known financial writers can persuade people to buy shares hence pushing the prices up.

14. Institutional buyers such as insurance companies can influence share prices by their actions.

15. The value of assets and the earnings from utilization of such assets will also influence share prices.

Posted Date: 2/1/2013 1:13:43 AM | Location : United States







Related Discussions:- Factors affecting share prices, Assignment Help, Ask Question on Factors affecting share prices, Get Answer, Expert's Help, Factors affecting share prices Discussions

Write discussion on Factors affecting share prices
Your posts are moderated
Related Questions
Acceptance Rule of Payback Period or PBP By using PBP method a company such will accept all those ventures whose payback period is less than to set via the management and will

Question 1: (a) What is meant by underwriting? (b) How can underwriting be used to manage the risks of a life insurance company? (c) Give and describe the three types of

A home buyer lists her home at a 7% commission rate and wants to net 45,000 after paying the mortgage balance of 68,000 and the broker''s commission. To the nearest dollar, what sh

Suppose an entrepreneur owns a firm which has two production opportunities. Technology A generates an output (net profit) of 10 in state 1, an output of 20 in state 2, and an outpu

Instructions 1 This case study counts as part of your group project. 2 Project Group: You must complete this assignment together with the group that you initially registered

Legal Rules - Factors Influencing Dividend a) Net purchase rule States that dividend may be paid from company's profit either past or present. b) Capital impairment r

Significance of Cost of Finance The cost of capital is Significance since of its application in the following areas as: i) Long-term investment decisions - In capital b

Financial analysis: Financial analysis (also defined to as financial statement analysis or accounting analysis or Analysis of finance) defines to an assessment of the viabilit

Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cos

Growth and Valuation Ratio This ratio indicates the growth potential of the firm in addition to determining the value of the firm and investment made via various investors.  T