How can the Stock price be a good indicator of your company's financial health and may also reflect the market's attitude?
In order to examine the financial position of the company investor generally study and analyse the financial position of the company
One of the ways in order to determine the financial position of the company is to analysis its stock price
The price of stock which is issued by the company to the general public is known as stock price
It plays a very important role in order to create the image of the company as well as to determine the financial health of the company
These are generally traded on recognized stock exchange, if the demand of the stock price is increases it will increase the stock price
Higher stock price indicates that the company is running its business operations effectively
- They are able to meet its future obligation efficiently
- Having sufficient capital in order to conducting its day to day business
- There should be regular flow of income
- Little variation in the expenses of the company
- Company received healthy return from its investment
- Sufficient inflow and outflow of cash with fewer blockages
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