Factors which determine the value of stock
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What factors determine the value of stock? What do you think is the most important factor and why?
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What factors determine the value of stock? What do you think is the most important factor and why?
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What factors determine the value of stock? What do you think is the most important factor and why?
Investment in shares of companies is investing in stock. There are two streams of revenue generation from this form of investment.
1. Dividend: Periodic payments made out of the company's profits are termed as dividends.
2. Growth: The price of a stock appreciates commensurate to the growth posted by the company resulting in capital appreciation.
On an average an investment in stock in has a given higher return with higher risks attached to it.
Factors affecting valuation of stock
a) Fundamental factors
These factors include the financial performance of the organization such as cash flows, dividend paid, quality of management, Product portfolio, industry prospects etc.
b) Macroeconomic factors
These factors include GDP growth, economic situation, legal regulations etc.
c) Technical ...
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