Why do technical analysts look at the moving average of a company’s stock price, and why do they look at trend lines?  (Did you know that technical analysis is used for bond investing too?)

Q: Do the Market-value ratios relate a firm's stock price to its earnings and book value per share?…

A: The market value ratios are generally used to assess the current stock price of a public listed…

Q: Which one of the following is a correct ranking of securities based on their volatility over a very…

A: Volatility refers to vulnerability of the security market prices to fluctuate. In case, a security…

Q: Common shares are the most important security issued by the companies to raise the funds. Since,…

A: A fractional ownership that begins the maximum entrepreneurial commitment associated with a trading…

Q: Discuss the differences between the primary and secondary markets.  when we buy stocks through…

A: Primary market is the market where new securities are issued in the market for the first time on the…

Q: How can I count market value of preffered stock? what do I need and how can I find out those parts…

A: The stock that provides a fixed amount of return (dividend) to its stockholder before paying…

Q: When it comes to accounting for stock dividends, what is the difference between the accounting for a…

A: In the stock market, dividends are paid out to shareholders:

Q: how to assess the estimation techniques of long-term corporate investments, by focusing  on the…

A: Stock Valuation techniques are mostly driven by the concept that valuation of a stock today is…

Q: Explain what a common stock yield is and why it matters to investors. Also, define and explain the…

A: The yield on common stocks: Common stocks represent individuals' ownership of a company. Individuals…

Q: A fundamental analyst uses the discounted cashflow method to value firms, and has a short-term…

A: Fundamental Analysis is a technique to value firms on the basis of their fundamentals i.e. their…

Q: Which one is correct answer please confirm?   Studies analyzing the historical returns earned by…

A: Returns from average risk common stock investments over very long time periods have been higher than…

Q: Discuss how changes in the general stock and bond markets could lead to changes in the required rate…

A: Required rate of return- is the minimum rate of return which an investor expects in return  for a…

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: how do the upward trend and downward trend of share price(stock price changes) relates to the market…

A: Market Efficiency - A market is efficient when such  market is characterized by perfect and…

Q: How do stocks and bonds differ in terms of the future payments that they are expected to make? Which…

A: Introduction: Bond is nothing but debt securities issued by a company or government if they want to…

Q: Explain how holding a portion of the earnings (Plowback ratio) could increases the stock price.

A: Answer: The term plow back is used in fundamental analysis which measure to what extent earnings are…

Q: What's the connection between financial statements and stock markets?

A: Introduction: Financial reporting and stock markets Financial reports are documents that provide…

Q: What portfolio management style focuses on identifying securities that are out of favour with…

A: A portfolio manager who seeks value investment style often purchases stocks that are out of favor…

Q: Which of the following holds true about the Stock market? a. It is for Purchase and sale of goods.…

A: A stock market is a market in which stocks of companies are traded among the buyers and sellers.…

Q: When computing diluted earnings per share, which of the following will not be considered in the…

A: Diluted earnings per share are calculated considering the potential common shares or convertible…

Q: How to calculate market price range of common stock?

A: Market price per share: A market price per share is total value of company divided by number of…

Q: Are most stocks traded on face-to-face exchangesor electronically? What impact has this had on…

A: In the  21st century with upgradation in Information Technology(IT) infrastructure, Stocks are…

Q: what is the difference between individual stocks and the stock market

A: Investing means allocating the funds in different securities, assets, or businesses with the motive…

Q: How can we determine if the problem or scenario involves or illustrates stocks or bonds? What…

A: Answer to question no : 4 *Basically stocks are the equity market linked to a particular index of a…

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

A: Sometimes, when a stock belongs to a particular industry and the industry is underperforming then it…

Q: Why are bond ratings important to firms and investors?

A: Bonds ratings are important for investors. Bond rating is the rating of the issuing company about…

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: Which of the following is/are CORRECT regarding stocks? Select all that apply. OIn an efficient…

A: In the given question we need to select the statements which are correct regarding stocks.

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: What are the differences between stocks and bonds in terms of predicted future payments? Which sort…

A: Introduction: A bond is a financial security issued by a firm or government to borrow long-term cash…

Q: What financial ratios would a credit rating agency (e.g., Moody’s, S&P Global Ratings) be most…

A: Financial ratios Financial ratios are those ratios that are derived by obtaining values from the…

Q: How do stock prices vary with the following: 1. the expected growth rate of dividends (earnings);…

A: As per the dividend growth model (DGM), the cost of equity is determined by accounting for the…

Q: Assess the estimation techniques of long-term corporate investments, in your answer focus on the…

A: Stock Valuation techniques are mostly driven by the concept that valuation of a stock today is…

Q: Evaluate the following statement: When a firm pays dividend, its stock price decreases in the…

A: The ex-dividend date is the time upon which company determines who will receive the dividend and the…

Q: model. If you expect the required rate of return to increase across the board on all equity…

A: If you expect the required rate of return to increase across the board on all equity securities,…

Q: What effect does the expected growth rate of a firm’s stock price (subsequent to issue) have on its…

A: (a) A convertible option gives the right/option to the holder to convert them into equity shares on…

Q: Which of the following is NOT used by analysts to value stocks? * P/E Ratio O P/ Assets Ratio O…

A: RELATIVE VALUATION Relative valuation involves comparing ratio multiples of a company with other…

Q: What financial ratios would a credit rating agency such as Moody’s or Standard & Poor’s be most…

A: Credit analysts and equity analysts use financial ratios to analyze various aspects of a company.…

Q: How does preferred stock compare to long-term debt? In what respects is this comparable to equity?

A: The preferred stock and common stock are the financial instruments to raise money from the market.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.