NVIDIA out to be a giant in an AI age
US graphics chip maker NVIDIA aims to be a powerhouse in an era of artificial intelligence with the big-ticket buy of Britain-based Arm, whose microprocessors are in many smartphones.
Sep 14, 2020
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Business
US graphics chip maker NVIDIA aims to be a powerhouse in an era of artificial intelligence with the big-ticket buy of Britain-based Arm, whose microprocessors are in many smartphones.
Sep 14, 2020
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9
Business
Apple co-founder Steve Jobs, who died in 2011, was a tough act to follow. But Tim Cook seems to be doing so well at it that his eventual successor may also have big shoes to fill.
Aug 24, 2020
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Business
Tesla will split its stock for the first time in its history so more investors can afford to buy a stake in the electric car pioneer following a meteoric rise in its market value.
Aug 12, 2020
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Chinese tech giant Tencent has offered to buy search engine Sogou in a deal worth around $2 billion, sending the latter's share price soaring 48 percent in New York.
Jul 28, 2020
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2
Automotive
Tesla reported a surprise second-quarter profit Wednesday as it confirmed ambitious targets for 2020 car deliveries despite the coronavirus pandemic and announced plans for a new auto factory in Texas.
Jul 23, 2020
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2
Automotive
Tesla says it delivered more electric vehicles worldwide in the second quarter than it did in the first. The increase came even though coronavirus restrictions forced it to shut down its only U.S. factory for much of the ...
Jul 2, 2020
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5
Computer Sciences
Video game enthusiasts may have felt a tremor in their wallets when a potential price for the upcoming PlayStation 5 console showed up online Wednesday.
Jun 12, 2020
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5
Business
Irascible, outspoken Tesla chief Elon Musk went on another Twitter rant Friday, including saying the company's stock was overvalued, which sent the electric carmaker's shares tumbling.
May 1, 2020
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4
Business
Fears that cash-rich corporate raiders could use the coronavirus crisis to swoop on weakened European firms were perhaps best exemplified by Donald Trump's alleged bid for a German biotech firm working on a vaccine.
Apr 22, 2020
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5
Energy & Green Tech
General Motors, trying to refashion itself as a futuristic company with technology to compete against Tesla, rolled out plans Wednesday for 13 new electric vehicles during the next five years.
Mar 4, 2020
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A share price is the price of a single share of a number of saleable stocks of the company. Once the stock is purchased, the owner becomes a shareholder of the company that issued the share. The price is calculated by dividing the market capitalization by the total number of shares outstanding.
When viewed over long periods, the share price is directly related to the earnings and dividends of the firm. Over short periods, especially for younger or smaller firms, the relationship between share price and dividends can be quite unmatched.
In the US, a share must be priced at $1 or more to be covered by NASDAQ. If the share price falls below that level the stock is "delisted", and becomes an OTC (over the counter stock). A stock must have a price of $1 or more for 10 consecutive trading days during each month to remain listed.
Many US based companies seek to keep their share price (also called stock price) low, partly based on "round lot" trading (multiples of 100 shares). A corporation can adjust its stock price by a stock split, substituting a quantity of shares at one price for a different number of shares at an adjusted price where the value of shares x price remains equivalent. (For example 500 shares at $32 may become 1000 shares at $16.) Many major firms like to keep their price in the $25 to $75 price range.
In economics and financial theory, analysts use random walk techniques to model behavior of asset prices, in particular share prices on stock markets, currency exchange rates and commodity prices. This practice has its basis in the presumption that investors act rationally and without bias, and that at any moment they estimate the value of an asset based on future expectations. Under these conditions, all existing information affects the price, which changes only when new information comes out. By definition, new information appears randomly and influences the asset price randomly.
Empirical studies have demonstrated that prices do not completely follow random walks. Low serial correlations (around 0.05) exist in the short term, and slightly stronger correlations over the longer term. Their sign and the strength depend on a variety of factors.
Researchers have found that some of the biggest price deviations from random walks result from seasonal and temporal patterns. In particular, returns in January significantly exceed those in other months (January effect) and on Mondays stock prices go down more than on any other day. Observers have noted these effects in many different markets for more than half a century, but without succeeding in giving a completely satisfactory explanation for their persistence.
Technical analysis uses most of the anomalies to extract information on future price movements from historical data. But some economists, for example Eugene Fama, argue that most of these patterns occur accidentally, rather than as a result of irrational or inefficient behavior of investors: the huge amount of data available to researchers for analysis allegedly causes the fluctuations.
Another school of thought, behavioral finance, attributes non-randomness to investors' cognitive and emotional biases. This can be contrasted with Fundamental analysis.
This text uses material from Wikipedia, licensed under CC BY-SA