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Share Value

In: Business and Management

Submitted By CONTROLERS
Words 268
Pages 2
What are Share Prices? • Share prices are current prices of shares that one can purchase from the different companies participating in the share market. • Share prices may indicate how companies are doing and how external markets and investors view the performance of the companies. • Despite these market indicators, share prices alone do not give conclusive insight on how businesses are performing. Investors must also understand the underlying context of share activities in the stock market.

What Affects Share Prices?

Internal Factors

• Companies issue dividends to their shareholders. share prices drop in the same value as the dividends paid to the company shareholders. • share bonuses that some companies give to their shareholders. Share bonuses are given in place of cash dividends. • warrants exercise to their existing shareholders. Warrants give shareholders the privilege of purchasing shares in their respective companies at a predetermined date and specified share prices.
External factors • uncontrolable factors • When more investors buy shares in a company, share prices would consequently go up. On the other hand, when investors are selling shares and stocks, stock and share prices would fall down • . Competitor activities may also affect share prices. • How the media, economist and analysts perceive the market have huge impact on the share prices. • Positive perception of the trading activities on the stock exchange may produce favourable outcome, wherein more investors will have confidence to invest in stocks and shares. This would eventually translate to the increase in share prices. Negative reviews or comments may also pull down share prices on the exchange. However, negative or positive perception may not always result in the anticipated

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