Role of cma - share prices, Finance Basics

Role of CMA - Share Prices

Role of CMA in determination of share prices

1. The CMA does not in any type of way influence share price of quoted companies.

2. The prices of that securities is determined via the supply and demand mechanism

3. Conversely, CMA may:

4. Advice on the issue price of new securities to the company

5. Alert the investors whether it feels such the issue price of specific securities is not in their interest

6. It guards against manipulation of insider trading and share prices.

Posted Date: 2/1/2013 1:43:46 AM | Location : United States







Related Discussions:- Role of cma - share prices, Assignment Help, Ask Question on Role of cma - share prices, Get Answer, Expert's Help, Role of cma - share prices Discussions

Write discussion on Role of cma - share prices
Your posts are moderated
Related Questions
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

Define the term - Right Issues If an existing company intends to raise extra funds, it can do so by borrowing or b issuing new shares. One of the most general methods for a

Analysis of the bond issue (a) Show that the price of the bond is equal to that of a portfolio which contains i) a long position in an option-free but otherwise identical co

Disadvantage of Joint Stock Companies Difficult to reconstruct the capital Many formalities in forming the company Heavy initial capital outlay. Loss of secrec

Example of Debt Finance An example: Interest = 10% tax rate = 30% The effective cost of debt (interest) = Interest rate (1 - T) = 10%(1-0.30) = 7% Consider comp

Risk-Return Trade-Off Most financial decisions comprise alternative courses of action. The choices have different returns and risk.  As like example, must we buy a replacement

Commercial Banks - Banking Institutions These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them availa

Earnings Method or Earning Basis Valuation By using the earning valuation method, a company will employ its P/E ratio to value its shares. P/E    =  MV/E MV    =   E x P

Dividend Cover Ratio Dividend cover = EPS/ DPS = Earning to ordinary shares/Dividend paid       This signifies the number of times dividend can be paid from earnin

Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in