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What are the major factors that determine the value of a firm's stock?
Wiki User
∙ 15y ago
The price of a firm's stock is determined by the market - what are people willing to pay for it. You might consider things like Net Book Value and Price/Earning ratio; but you also have to consider other business conditions: Has the company just secured a valuable patent or trademark that has not produced any income yet? Are they suceptible to other market trends (good or bad) such as mortgage companies feeling the impact of a declining real estate market. And don't ever confuse a good product with a good company - a poorly managed company will fail regardless of their products. A stock is considered over valued if the combined market price of all the company's shares is above the expected future value of the company, and it is considered undervalued if the combined market price of all the company's shares is below the expected future value of the company.
Wiki User
∙ 15y ago
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Who are the parties involved in the stock investment?
In its simplest form, there has to be a buyer and a seller in order to efficiently transfer ownership of a stock. A company has to initially sell shares of its stock through underwriters who help determine the initial stock price and assist in the marketing efforts to place the stock through different brokerage firms and investment banks.
What is the stock market used for?
It can be used by firms as a source of financing.
What are shares of stock currently owned by the firms shareholders called?
Outstanding
What is the purpose of the Australian stock exchange?
The purpose of the Australian stock exchange is that it is the main stock exchange for Australia. It is constantly launching new branch structures with there company and has taken over many other stock exchange firms.
What are some good stock brokerage firms?
Some good stock brokerage firms are: eTrade, TradeKing, TD Ameritrade, Firstrade, USAA, Merrill Edge, Scottrade, Just2Trade, Options House, TradeMonster, to name a few. One should compare features of each firm before investing.
What is the number of privately held firms in the US?
As of 2007, there were approximately 6,049,600 US firms, of which roughly 6,500 are listed on major stock exchanges. So your answer is: "Over 6 million" or "more than 99% of US firms are privately held".
Who are the parties involved in the stock investment?
In its simplest form, there has to be a buyer and a seller in order to efficiently transfer ownership of a stock. A company has to initially sell shares of its stock through underwriters who help determine the initial stock price and assist in the marketing efforts to place the stock through different brokerage firms and investment banks.
What type of major should a future stock broker be in college?
Firms to be a stock broker usually require college graduates, courses such as Finance, Accounting, Economics or Statistics could help push you further into this career.
Why do managers split their firms stock?
To raise money.
What are the uses of a stock calculator?
The sues of a stock calculator are to determine the values of various stocks. In addition you can use them to determine the value of a stock portfolio.
What is the stock market used for?
It can be used by firms as a source of financing.
What are shares of stock currently owned by the firms shareholders called?
Outstanding
What kind of return can be expected on a stock market future?
It really depends on the future. There are several factors that can effect the return on a future. It is not that easy to determine a return.
Who controls monetary and fiscal policy?
No one controls it. It is a combination of factors that figures into monetary and fiscal policy. There are world factors, the price of gold, world stock markets, wars, and other things determine policy.
What is the meaning of stock brokerage firms?
A stock brokerage is a business that will charge you a fee in order to invest your money. The stock brokerage is more or less a go-between, if you will, between you, the investor, and the seller of the stock. You may be able to save some money by buying stock online through firms yourself if you understand how the market works or are willing to take higher risks. Stock brokers may be able to guide you however if you are unsure.
What is stock evaluation?
Stock evaluation is the process of analyzing a company's financial information, market performance, and other factors to determine the worth of its stock. Investors use various metrics and methods to assess the attractiveness of a stock as an investment opportunity. Key elements of stock evaluation include analyzing a company's revenue, earnings, growth potential, and competitive position in the market.
What is the purpose of the Australian stock exchange?
The purpose of the Australian stock exchange is that it is the main stock exchange for Australia. It is constantly launching new branch structures with there company and has taken over many other stock exchange firms.
