Factors affecting share prices, Finance Basics

Assignment Help:

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.


Related Discussions:- Factors affecting share prices

Budget, Why good judgement is important when making budgeting decisions

Why good judgement is important when making budgeting decisions

The profitability index for the investment, Question   Clifton-Peters L...

Question   Clifton-Peters Ltd is a manufacturer of household goods located in Melbourne. They presently make and wholesale fruit juicers, blenders and baking equipment. The Gen

Option Pricing, Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1)...

Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1) + (1-a)C(K2) where C(k) is the European option price with strike K. All the options in this question are assumed to be

Accept or reject rule of npv, Accept or Reject Rule of NPV Under this ...

Accept or Reject Rule of NPV Under this method, a company should accept an investment venture if N.P.V. is positive that is if present value of cash outflows exceeds such of c

what is their average aggregate inventory value, 1. The Marlin Company ope...

1. The Marlin Company operates 50 weeks a year, and its cost of goods sold last year was $1,500,000. The firm carries six items in inventory: three raw materials, two work-in-proce

Who is floor broker, Who is Floor Broker Floor brokers aren't many in n...

Who is Floor Broker Floor brokers aren't many in number. They execute orders for fellow  members  and  receive  a  share  brokerage  commission  charged  by  a commission broke

Present value concept - discounted cash flow techniques, Present Value Conc...

Present Value Concept - Discounted Cash Flow Techniques This perception acknowledges the fact which a shilling losses value along with time and as that if it is to be compared

New divisor, Able, Baker and Charlie are the only three stocks in an index....

Able, Baker and Charlie are the only three stocks in an index. The stocks will sell for $93.$312 and $78 respectively. If Baker undergoes a 2-for-1 stock split, what is the new div

Bank draft, what is bank draft?How it can be prepared?

what is bank draft?How it can be prepared?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd