When a firm needs money
for expansion or for any other means, it can raise money by issuing shares or
common stock in the stock market. Shares or common stock give the right of
ownership to its buyers. Stocks are traded across the globe and are issued almost
by every big company. One of the interesting things about stocks is their
price. The stock prices may fluctuate every second of the day responding to the
market news and information.
There are different
outcomes of different stock news. Sometimes, firms announce stock split in some
ratio. In case of 2to 1 split, the stock price is halved. Companies split their
stocks when they feel that their stock prices have gone too high or beyond the
price levels of similar firms in the same sector. The primary motive behind the
share split is to make the stock more affordable to investors. Stock split is important news about the firm
and it can increase the new decreased stock prices after the split. Since many
investors would consider the stock more affordable, they buy the stock and the
demand for the stock goes up resulting in increase in stock price. Another
reason for the price increase is that people would think that the company’s
stock’s price is continuously increasing, so they assume this growth will continue
in the future, and again, lift demand and hence, stock prices.
Important news about a
stock is the news of dividend as well. Firms usually give annual dividends to
their shareholders. The news of dividend usually increases the stock price as
the demand for the stock goes up in the market. If the company refuses to pay annual
dividends, it often disappoints shareholders and may result in decrease in
stock price. It differs from situation to situation. For instance, if a firm
offers so much capital growth and it refuses to pay dividends, it is very
unlikely that its stock price will fluctuate much due to this news. To check
out which companies is expected to give dividends at the end of their fiscal
year, visit one of the most viewed financial news and information platforms
Bidnessetc.com.
Market news, trends and
information can also affect stock prices and are therefore, important to
consider. These news may include technological change, product launch,
competitor’s expansion plans, change in law and order, change in government
policies, increase in innovation, recession, growth plans and strategies,
recruitment, change in weather, change in consumer expectations, etc. The news of the industry may affect stock
price of a firm and therefore, it is extremely important to keep a sharp eye on
the market changing trends, customer expectations, technological advancements and
other industrial information. To stay up to date with the current markets news
and information, it is recommended to visit one of the most common financial
news broadcasting website Bidnessetc.com.
Hence, it is really
important for both firms and investors to stay up to date with the market
information and change their strategy accordingly in order to maximize their
profits.
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