Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Empirical Measurement of Liquidity: The number of days a particular share is being traded reflects the liquidity of the market. If it is traded actively on 50% of the days when the market is open, then it is termed as liquid. The variation in price of the share from one trading day to another also determines the liquidity of the share. The market is said to be shallow, if there is a wide gap between the lowest asked price and the highest bid price. The bid-ask difference is an inverse measure of liquidity. In the United States, one-eighth point of variation in price from preceding trade is taken as liquid market share. But in India, the minimum tick starts from 0.25.
Determination of Fair Price: Usually, the forces of demand and supply determine the price of the share. When the prices are going up, it is termed as a bull phase and when the prices are going down it is termed as a bear phase. At times large-scale speculatory activities raise the price of the share. But such activities are ephemeral in nature. There is no fundamental relationship between book value, par value and market value of the share, because the share price may experience a boom if there is large-scale investment from an individual or mutual fund company and also because during such period too much money chases a few shares. The stock exchanges provide a meeting point for the buyers and sellers to negotiate and determine the fair price of a stock.
Aids Industries to Raise Capital: If a company performs better, then it may find many investors. Shares of such good performing companies are actively traded in the market. This facilitates the company to command good price for the subsequent primary issue in the market. This creates a cyclical process in the market. If a company issues shares in the market and raises funds, then the performance of the company in later years will determine the issue price of the subsequent offerings. The premium demanded by the company reflects its past performance. Thus, the stock exchange acts as a channel which opens up avenues for the companies to raise further capital.
Other Allied Functions: A stock exchange ensures transparency in the process of trading in securities, thereby creating confidence among the investors. A higher degree of transparency helps in eliminating unfair trade practices from the market.
Calculate the firm’s WACC. Prepare and analyze each planned capital expenditure. Evaluate, rank, and recommend the capital expenditures according to beneficial value to the organiz
Forms of Regulation There are different forms of regulation to regulate market to fulfill certain objectives. These are discussed below: Disclosure Regulation The whole
Explain the term- quality of decisions Performance and business risk This is focussed on " quality of decisions ". The comparison of an organisations performance with t
Question 1: a) Describe fully why and how government intervenes in the foreign exchange market. b) "Changes in the equilibrium exchange rate between a pair of currencies rel
Meaning of Capital Budgeting Decisions relating to irreversible commitment of funds to projects whose profits are to be reaped over a time span longer than the current account
Question 1 International trade is the economic interaction among different nations involving the exchange of goods and services. Discuss the role of Banks in International Trade T
Q. Board of Directors Board of Directors - Individuals responsible for overseeing the affairs of an entity including the election of its officers. Board of a CORPORATION which
Applicant should have been well versed in the calculation of actuarial losses and gains on pensions. It would have been significant to ensure each item affecting liabilities and as
Value of a Warrant: The market price of a warrant fluctuates between minimum and maximum limits. When the current market price of the stock Ps is greater than the exercise pri
drow decision table of financee managment system
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd