Why Stock Price Should Be Supply And Demand

I have learned that prices can rise or fall quickly and unexpectedly, and there are low-risk and high-risk stocks in the stock market. Share prices can change quickly and dramatically, because they are based on supply and demand. For example, if more people want to sell their stocks than buy them, the prices of the stocks will fall. This is important to take into consideration, because you do not

Cap Tell You? The recognition that Market Cap is a function of both share price and share volume is significant for this number tells you more about the real value of the company than just the share price alone. In the extreme a corporation could be trading at a huge P/E multiple but if it only had relatively few shares outstanding then the company would not be

The most obvious reason for the difference between the market value of equity and the book value of equity is the inability to record certain intangible assets such as brand value, customer loyalty, and perhaps most importantly, human capital. These intangible assets are likely to provide tremendous earnings growth in the future which determines the company’s market value. Notice also that the company’s choice of conservative accounting policies has the effect of depressing the company’s book value of equity.

The stock market prices and value vary day to day as a result of market forces. This means that stocks and shares prices change as result of supply and demand of goods and services. The stock market influences the financial decision making of companies. Therefore, it is important to follow said shares as well as others that might affect stocks of interest. Price vary accordingly with demand and supply, that is, if there is a higher demand then prices increases, whereas, if supply is higher than demand, stock prices decreases.

A firm’s intrinsic value refers to the true worth of stock in that firm which is calculated on return data and accurate risks. On the other hand, a firm’s current stock price talks about its market price as a whole as perceived by an

The internal and external factors of an organization can affect the stock prices, which leads to perceived valuation of the company. The valuation of an organization’s worth compared to its financial statements is useful to introduce company changes if necessary. There are various factors that can lead to the valuation of a company influenced by the external and internal factors. Proceedings are some internal and external factors that may influence the investor’s decisions to invest in any organization.

It is important to know the proper technique and method of valuing a company because different people may have different ways of assessing the value; it is also important in understanding the bank’s method of appraising and valuing a company or business

Around 4 years ago, I developed an interest in the stock market. My dad, who has some experience in this, helped me to understand all of the different numbers and graphs. Because I was so eager to own my own stocks, my dad “loaned” me some money so I could buy and follow a few stocks. I was given information on many different public companies, and my job was to find the stocks that I thought would continue to develop and thrive. The information was confusing, and honestly I needed a lot of help at first to comprehend it all. One statistic that is key to a stock’s value is the P/E ratio which measures the price of a stock relative to the earnings for the company. You can compare the valuation of different companies’ stock price based on this.

Corporations can only hope that they are portrayed in a good light. Way’s that companies usually create publicity is to hold events or have special promotions that will be spoken about on radio and television. In doing this any company can have publicity and be able to control it in some way shape or form because they are controlling the activity that has created the publicity. In light of the nature of publicity and how evasive it can be companies set up P.R.’s (Personal Representatives). These people speak to the press when they have questions for the company and are the face of the company when there is any problem. All in all the blessing/cursing relationship between companies and publicity is an area that all companies must deal with in a wise manner.

Elasticity of demand represented as “Ed” is defined as a “measure of the response of a consumer to a change in price on the quantity demanded of a good” (McConnell, 2012). Determinants for elasticity of demand would include the substitutability of a good, proportion of a consumer 's income spent on a good, the nature of the necessity of a good and the time a purchase is under consideration by the consumer. Furthermore, elasticity of demand is calculated with this formula:

P = 270 – 2Q so TR = 270Q – 2Q2 and MR = 270 – 4Q

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.

The supply and demand of goods and services vary due to various factors. This paper will discuss the supply and demand of vacation to a theme park and the various factors which affect them.

A share of common stock is more difficult to value in practice than a bond, for at least three reasons. First, with common stock, not even the promised cash flows are known in a advance. Second, the life of the investment is essentially forever, since common stock has no maturity. Third, there is no way to easily observe the rate of return that the market requires. Nonetheless, as we will see, there are cases in which we can come up with the present value of the future cash flows for a share of stock and thus determine its value.

There are many reasons could result in the increase of index. The stock index were composed of all the stocks’ prices in the stock market. In general, trading volume is the main factor which results in the change of stock’s price according to Wu (2013). He also uses Andersen’s random sample, which traded on American Stock Exchange of 2002-2004, to prove a theory that the absolute stock’s price movement is positively correlated with trading volume. Also, Chen (2007) claims that the stock’s price increases because of the good business of a company. With the development of economy, lots of investors intend to buy stocks as they believe most of the companies will earn profits. According to the historical data of Shanghai Stock Exchange, China’s stock index has experienced 4 times fast-rising since 1990 (Shanghai Stock Exchange Offical Website, n.d.).