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
Lavista Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year just ended few days back

Agency Relationship between Government and the Shareholders Shareholders and via extension, the company they own operate within the environment requiring the charter or licens

What is a Treasury bill? How risky is it? Treasury bills are short-term debt instruments granted by the U.S. Treasury which are sold at a discount and pay face value at maturit

How is finance related to the disciplines of accounting and economics? Financial management is necessarily a combination of economics and accounting. First, financial managers

according to given specialization take down an industry and investigate its managerial hierarchy to describe each of one of the managerial work level functioning

what is the importance of public expenditure

Importance of Working Capital Management The finance manager must understand the management of working capital since of the following purpose: a) Time devoted to working c

Tank Industries Washers decides to pay the following dividends over the next four years: $2.50, $3.20, $4.75 and $5.20 respectively (starting at time 1). a.    After year 4, the

Constraints of Venture Capital in US 1. Require of rich investors in US, thus inadequate equity capital. 2. Inefficiencies of stock market - NSE is investors and inefficien

Definition of Stock Exchange According to Pyle: "Stock Exchange are market places where securities which have been listed thereon, may be bought and sold for either investme