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

Q: Answer the following questions: A. Explain why the price of many individual stocks still goes down,…

A: Stock prices fluctuate regularly. It depends upon growth, dividend and discounting rate or WACC of…

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: 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: 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: 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: If we dont have earnings and don't have dividends, how can we figure out what the value of the stock…

A: Determining the value of a stock without earnings or dividends relies on alternative valuation…

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: How has the stock market been effected since the closure of Silicon calls bank ?  What is the…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: 433,895 ), 2022 3,000.00 3,002.00 2,808.00 2,818.00 2,870.19 290,250 P, 2022 3,080.00 3,132.00…

A: Prices of stock moves up and down according to the demand in the stock markets. Trends can be…

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: 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: n the general stock and bond markets lead to changes in the required rate of return on a firm’s…

A: Step 1 The required reimbursement rate is the minimum refund that an investor will receive from…

Q: “Highly variable stock prices suggest that the market does not know how to price stocks.” Comment.

A: Financial markets are highly volatile as each investor has its own expectation with each stock and…

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: 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: What happens to the time value as the stock price rises? Why?

A: As per the concept of the time value of money, a dollar received today is valued more than a dollar…

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: Assume that the expected inflation rate has just been revised upward by the market. Would the…

A: The required rate of return is the return received by an investor at a minimum acceptable rate. It…

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: 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: 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 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: Why Meta stock soared recently despite earnings miss? Is it normal to observe that stock price…

A: Earning miss is a concept that shows that the actual earning of the company is less than the…

Q: Will the stock market Crash again? yes or no? why?

A: Stock market crashes due to unexpected or uncertain unfavorable events.

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”.