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
Finance Functions The functions of Financial Manager can broadly be split into two:  The Managerial Functions and The Routine functions. Managerial Finance Functions

1.  A company is trying to decide which one of two projects it should accept. Both projects have similar start-up costs. Project 1 will generate annual cash flows of $52,000 a year

Conduct research and explain the companies, their operations, locations, markets, and lines of business. Collect financial statements for the past three years, fiscal or calendar .

What is the Execution of order in the Stock Exchange When broker receives the margin money and is clear about the order received by him, he puts details in the 'order book'.

Assignment Gary and Beth have accepted the asset allocation that you have given them, but are now looking to you to give them some advice on what stocks they should purchase. R

Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving

Constant payout ratio 1. This is whereas the firm will pay a fixed dividend rate as like 40 percent of earnings. The DPS would consequently fluctuate as the earnings per share

Hatch System - Stock Exchange This is an automatic system based on the assumption such when investors sell at a certain percent age below the top of the market and buys at a s

Proforma Balance Sheet This refers to the projected balance sheet at the finish of forecasting period.  The items in the proforma balance that vary with sales would be determi

how i can get enough money with out doing any works ????????????