Why Do Companies Care About Their Stock Price?
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There are several reasons a company may care about keeping a high and rising price.
A company’s financial statements may refer to multiple types of stock, including authorized, outstanding, float and restricted shares. If a company issues more shares, its outstanding shares will increase. The outstanding shares comprise of float stock and restricted stock
The discount rate is the interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future. Let's say you need $1,000 one year from now to go on vacation. We can use the discount rate to determine how much money you would need to have today to have $1,000 in one year.
Most investment choices involve a tradeoff between risk and reward. The "Efficient Frontier" is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they're willing to accept.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Learn about the differences between these two words and how each one is used in the stock market.
Learn more about this statistical measurement used to represent movement between a security and its benchmark.
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