why does the price of individual stocks still goes down despite the stock market going up

Q: Further explain why the price of many individual stocks still go down, even when the overall stock…

A: Within the greater market cycle, stocks move up and down individually as well, sometimes in sync…

Q: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

Q: What does the rate of return on common stock show, and how is it calculated?

A: Rate of return on the common stock: It signifies the amount of net income that has been retained for…

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: How does eps affect the stock market

A: The earning per share of the company will be reflective of the total earnings made for each of the…

Q: Why would the WACC based on market values tend to be higher than the one basedon book values if the…

A: Introduction: WACC is the weighted average cost of capital. It is calculated by using, Where, Wd is…

Q: What is a "Bubble?"  Does a bubble in the Stock Market mean that the Market is not efficient?

A: A “Bubble” is an economic cycle in which the prices of asset increases rapidly followed by a…

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: Which one of the following statements is correct? A- Stock prices are independent of the economic…

A: Stock price movement is based on market sentiments or in other words how investors perceive the…

Q: Further explain why the price of many individual stocks still goes down, even when the overall stock…

A: Stock prices change regularly in response to market conditions and firm performance. One market…

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: When is a stock said to be in equilibrium? Why might a stock at any point in time not be in…

A: When buying or selling a stock, investors are indifferent. There is no inherent imbalance if a stock…

Q: Discuss how changes in the general stock and bond markets could lead to changes in the required rate…

A: Required rate of return- is the minimum rate of return which an investor expects in return  for a…

Q: Who is responsible for monitoring stock in the stock market? Who issues a stop loss on stocks?…

A: The regulating agencies of stock market are responsible for stock markets monitoring. Different…

Q: What happens to the price of a stock when the stock goes “ex-dividend”? a) it decreases…

A: Ex dividend date is the cut off date to purchase a stock. Investor who purchased stock on ex…

Q: Why do people prefer bonds over stocks? And why does the price of many individual stocks still go…

A: Stocks are smallest unit in which whole equity of entity is distributed. Bonds are debt instruments…

Q: why does the price of many individual stocks still go down, even when the overall stock market goes…

A: solution- The price of a security is based on systematic and unsystematic risk.

Q: To what extent does investor mood contribute to the observed fluctuati

A: Introduction : In simple words, the given question relates to the concept of emotion investing,…

Q: why the price of many individual stocks still go down, even when the overall stock market goes up?

A: Solution- Price of the individual stocks are going down even if the overall market is going up,…

Q: how does the stock market work?

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

Q: If you read in the Wall Street Journal that the “smartmoney” on Wall Street expects stock prices to…

A: Whenever investor expects the price of security to fall, they sell the security. This is called…

Q: _ is the highest or lowest amount someone is willing to pay for the stocks.

A: The highest or lowest amount of stock is depended on the many factors and functionality of the…

Q: Explain which has a stronger effect on stock prices, the change in the interest rate or the…

A: Stock is one of the major securities issued by the companies and an important financial indicator…

Q: What does it mean to say “stock prices are nonstationary”?

A: Stock prices will be discovered by continuous interaction of demand and supply. Stock prices are…

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: what is the difference between individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

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: How can you avoid the value of your stock from going down?

A: The price of the individual stocks is going down even if the overall market is going up because the…

Q: COVID-19 pandemic affect stock market volatility? Explain in details

A:

Q: is common stock decrease debit or credit?

A: Common Stock-  It refers to the shares which are issued by the organization within the general…

Q: Even when the overall stock market goes up, why does the price of most individual stocks still go…

A: The question is based on the concept of financial analysis.

Q: “When the stock market rises, investment spending isincreasing.” Is this statement true, false, or…

A: When the stock market rises, investment spending isincreasing. false

Q: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

Q: Discuss buying back stock and splitting shares as ways in which the rate of return of stocks is…

A: The rate of return on stocks is the net gain or loss on the amount invested on stocks over a…

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: How will the change in required return influence the price of a stock? How will the dividend growth…

A: The Gordon growth model calculates the price of the stock by using the dividends, growth rate of…

Q: How do stock prices vary with the following: 1. the expected growth rate of dividends (earnings);…

A: As per the dividend growth model (DGM), the cost of equity is determined by accounting for the…

Q: or financial traders to predict the direction of stock market price movement?

A: In the market direction and trends are important in the stock because stock market is not ideal…

Q: The constant growth DCF model used to evaluate the prices of common stocks isconceptually similar to…

A: Answer -true.

Q: What does this implyabout detecting bubbles in the stock market?

A: Bubbles in stock market means when the prices of all the stocks exceed its fundamental value by a…

Q: Why Are Stock PricesSo Volatile?

A: The prices of stocks listed on stock exchanges are dynamic and change every minute. Volatility is…

Interest Rate

When you deposit your money with the bank, the deposit earns you some extra money at the end of the specific period – something more than what you deposited. That amount of money that the bank pays you for keeping the money with the bank is the “interest” and the percentage at which the bank pays you for your amount is called the “interest rate”.