What are the benefits of a stock buyback to investors?

Q: How do you carry out your investment strategy for stock securities?

A: The mainly followed investment strategies are value investing, growth investing, momentum investing…

Q: What steps can you take to put your stock-investing plan into action?

A: Solution: To begin investing in stock securities, you must first get a general grasp of the economy.…

Q: What is the major reason for a forward stock split?

A: Stock Split: Stock Split is a scheme in which a company’s total number of shares outstanding will…

Q: Can an investor eliminate market risk from a common stock portfolio?

A: There are two types of Risk 1. Systematic  Risk:- These are risk pertains to Industry as a whole not…

Q: how does diversification prevent individual stock prices from going down

A: Diversification is a method that mixes a wide variety of investments within a portfolio. By doing…

Q: What happens if someone is not given the Beta for a stock that they are analyzing? Will they still…

A: CAPM described the relationship between systematic risk and expected rate of return. The equation is…

Q: Explain 'Can efficient market hypothesis and behavioural finance co-exist to explain stock return…

A: Behavioral finance, a branch of behavioral economics, presupposes that psychological impacts and…

Q: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…

A: One of the important decisions which is taken by the financial manager is to maintain the minimum…

Q: Why might the stock price changing make sense within the context of risk and return?

A: Stock price movement is dependent on various factors which would eventually impact the required rate…

Q: dividend reinvestment plan

A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…

Q: What happens when investors rate of return is greater than YTM and coupon rates?

A: The coupon rate of a bond is the annual rate of interest it pays, whereas the yield is the rate of…

Q: Is stock price maximization good or bad forsociety?

A: Answer: Maximization of stock prices occurs because it benefits the society at large. The stock…

Q: How does forward pe effect the stock market?

A: P/E refers to the price earnings ratio. It is one of the important valuation metrics that we use in…

Q: How is risk defined and measured? How might the magnitude of the market risk premium impact…

A: In financial terms, the risk is referred to as the possibility that an outcome's actual gains will…

Q: is passive stock investing the superior approach?

A: Active investing is when the money is invested in investment stocks that have been selected by a…

Q: Can an investor eliminate market risk from a portfolio of common stocks?

A: Beta is a systemic risk of this kind. The risk integral to the business or segment as a whole is…

Q: What are efficient markets? Imagine if the price of a stock is going up and financial markets are…

A: A stock market can be defined as a place where an investor can buy or sell the securities. A stock…

Q: What is relationship between the market risk of a stock and it's expected return?

A: Expected return is directly related to the market risk . Market risk is represented by beta. Higher…

Q: What is a firm’s intrinsic value? Its current stock price? Is the stock’s “true” long-run valuemore…

A: An estimation of the true value of the stock of the company by considering the risk and return…

Q: How can you put your strategy for investing in stock securities into action?

A: solution investing in stock securities requires understanding of the economy at large at first After…

Q: how does the stock market work?

A: Stocks in the stock market represent ownership of equity in a public firm.

Q: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: What is the ex-dividend date, and why is it important to investors?

A: One business day before the record date of a stock is referred as ex-dividend date.  Whenever a…

Q: stock markets protect a firms shares from liquidity? true or false

A: Stock markets are said to be amongst the foremost vital components of a free-market economy where…

Q: What will be the significance of the stock buyback to an investor?

A: Introduction: Stock repurchases ensures that by buying outstanding shares of its own stock, a…

Q: What is the expected return on the firms stock

A: Here, Proportion of Debt is 75% Proportion of Equity will be (1-75%) = 25% Cost of Debt is 5% Risk…

Q: Are stock prices affected more by long-term or short-termperformance? Explain.

A: Answer: The stock prices are influenced by results in both the long and the short term. The…

Q: To estimate the required rate of return on a stock we can use the Capital Asset Pricing Model (CAPM)…

A: The required rate of return on a stock can be defined as a rate of return which an investor would…

Q: Why might other investors prefer low-dividend-paying stocks?

A: Investors determine the dividend as part of the stock value of a stock when stock offers a dividend.

Q: What are the advantages and disadvantages of higher dividends to investors?

A: Dividend can be defined as the division of profits accumulated by the company to its shareholders in…

Q: What are some benefits of owning stocks? How can you mitigate the risk?

A: Owning stocks brings with itself its own unique set of risks and benefits.

Q: Do investors generally prefer dividends or share repurchases? Support your answer.

A: Firm issues various securities to arrange the funds for the business and pay periodicals return on…

Q: What effect do increasing inflation expectations have on the required returns of investors in common…

A: Inflation: it is increase in the price of most of the goods and services.

Q: What are the implications of the efficient market hypothesis for investors who buy and sell stocks…

A: The efficient market hypothesis or efficient market hypothesis is also known as the random walk…

Q: If a company is thinking about issuing preferredstock to raise capital, what are some factors thatit…

A: Preferred stocks are the stocks which are redeemed by the firm before the redemption of equity…

Q: Is the Stock Market Efficient?

A: Market efficiency can be defines as the extend up to which all the useful and important information…

Q: In what situations should managers consider the use of stock splits?

A: stock splits: It is the situation of increasing the number of shares by dividing one share into tow…

Q: How do you calculate conditional volatility of a stock returns?

A: Volatility represents how large an asset's price swing around the mean price i.e the statistical…

Q: How are share repurchases an alternative to dividends, and why might investors prefer them

A: The share repurchase is the alternative to dividends because when a company repurchases it’s issued…

Q: How might astute bondholders react if stockholders take on risky projects?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Given the Efficient Market Hypothesis, do you think we still need to study common stock valuati

A: Introduction : In simple words, the efficient market hypothesis refers to the hypothesis refers to…