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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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
"Bein g a newly appointed analyst at Credit Suiss e, one of your prime role is to facilitate the Global head of valuation in providing detailed and timely analysis. The next meeting is beingg scheduledd for the up coming Saturdayy, and you are required to calculat e the price of a few stocks and provide their valuations. The information is mentioned below": What would be the expected price of TVC stock today, given the streams of future dividends of $4 for next 3 years, having ZERO growth rate, and 10% required rate of return? The Walgreens BossoTTs Alliance Company has recently paid dividend D0 = $3, and growth is expected to remain 5% throughout. The required rate of return is 10%. Calculate dividend streams for the next 2 years, and their PVs? You have forecasted NICIE dividends of $5, $5.70, and $5.95 over the next three years respectively. After the end of three years the anticipated selling market price of NICIE will be $135. What is NICIE stock price provided a 7% expected…
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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
The company must issue a new stock if the market value is less than intrinsic value, otherwise there is no need for a stock issuance. Select one: O True O False Next pag
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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?

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