Question: I have a question about the stock market.I've never understood and always puzzled about something extremely basic andfundamental about how the stock market works.According to my understanding, a firm issues a certain number of shares, and the valueof those shares is determined by supply and demand. However, it appears that I, andanybody else, can purchase or sell any number of shares at the present stock price atany time. So, what is the mechanism that influences the price of a stock?If I check at the stock price of business X and find that it is selling for $100 a share, I, likeanyone else, can pick whether to buy one share for $100 or one million shares for $100.So, what causes the stock price of firm X to rise or fall to $100.01 per share or $99.99 pershare? The stock price does not appear to move up unless all available shares have beenpurchased, nor does it appear to move down unless there are persons prepared to sellshares for less than the market asking price at any particular time.

In stock there are two factors responsible for change in stock performance of company and…

ve never understood and always puzzled about something extremely basic and indamental about how the stock market works. ccording to my understanding, a firm issues a certain number of shares, and the value those shares is determined by supply and demand. However, it appears that I, and nybody else, can purchase or sell any number of shares at the present stock price at ny time. So, what is the mechanism that influences the price of a stock? I check at the stock price of business X and find that it is selling for $100 a share, I, like nyone else, can pick whether to buy one share for $100 or one million shares for $100. o, what causes the stock price of firm X to rise or fall to $100.01 per share or $99.99 per hare? The stock price does not appear to move up unless all available shares have beer urchased, nor does it appear to move down unless there are persons prepared to sell hares for less than the market asking price at any particular time.

ve never understood and always puzzled about something extremely basic and indamental about how the stock market works. ccording to my understanding, a firm issues a certain number of shares, and the value those shares is determined by supply and demand. However, it appears that I, and nybody else, can purchase or sell any number of shares at the present stock price at ny time. So, what is the mechanism that influences the price of a stock? I check at the stock price of business X and find that it is selling for $100 a share, I, like nyone else, can pick whether to buy one share for $100 or one million shares for $100. o, what causes the stock price of firm X to rise or fall to $100.01 per share or $99.99 per hare? The stock price does not appear to move up unless all available shares have beer urchased, nor does it appear to move down unless there are persons prepared to sell hares for less than the market asking price at any particular time.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table below. The Tiny Market Index (TMI) is value-weighted and its base day is Day 1. You hold a portfolio with one share of company A and two shares of company B. Company B Day 1 2 Price $8.00 $8.64 Company A # of Shares 900 900 Price $12.00 $13.56 weight.) 1. What is the return on your portfolio from Day 1 to Day 2? # of Shares Express your answers to the following questions in percentage form rounded to one decimal. 1,801 1,801 2. What is the difference between the return on your portfolio and the return on the TMI from Day 1 to Day 27 (Your return minus the index weight.) 3. What is the difference between the weight of company A in the TMI and the weight of Company A in your portfolio? (Your weight minus the index
Suppose you are looking for some investment opportunities in the stock market. 1. You observe that Google or Alphabet Inc. (goog) is currently traded at $1133 per share. However, it has never paid any dividends to its shareholders. Your friend concluded that the stock price of google is totally overvalued by applying the dividend discount model. Do you agree? Explain your answer. 2. A portfolio manager recommends you his mutual fund. He claims that the mutual fund he manages obtained a 10%, 6% and 8% return in the past three years, while the market return was only 8%, 4.8%, and 6.4% in the past three years. Based on this information, do you believe this manager is good at picking stocks? If not, what other information do you need?
answer the questions as soon as possible
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Do not give image format
6. What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would select (do not include names of mutual funds or stocks, just overall types of investments.)?
The EV Index is a price weighted stock index based on the 3 largest electric vehicle manufacturers in the nation. Consider these stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. (Please pay close attention to stock split) P0 Q0 P1 Q1 P2 Q2 A 80 200 85 200 90 200 B 60 300 70 300 35 600 C 65 200 67 200 70 200 a. What is the divisor for the price weighted index in year 2?2.69 (sample answer: 2.55) b. What is the price weighted index at t=1? 64 (sample answer: 156.45) c. What is the price weighted index at t=2? 70.63(1sample answer: 56.45)
Please help correctly all or skip pls
I was able to insert the numbers. I am having a hard time of explaining whats going on. Please explain each section to me and what it representing. Please explain cash div/share and dividend yield to me for understanding. From what I see, since the stock price is lower in 2022, they have more shares outstanding and more assests available for the stockholders. In 2022, is the stock market undervauled and that is the reason they have so many shares?
plz solve!!!
#2
In a few sentences, answer the following question as completely as you can. You are discussing stock valuation techniques with your broker. You mention that your Finance professor stated that “a stock that will never pay a dividend is valueless.” Your broker says this is not true because you can always sell the stock to someone else (thus, a capital gain is possible) a share of stock represents a share of ownership in something tangible (i.e., the issuing firm).Argue for or against your broker’s position.

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