Tesla market value tops $700 bn for first time
Electric carmaker Tesla closed trading on Wednesday with a market value topping $700 billion for the first time.
Jan 7, 2021
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Electric carmaker Tesla closed trading on Wednesday with a market value topping $700 billion for the first time.
Jan 7, 2021
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Business
China's best-known entrepreneur, e-commerce billionaire Jack Ma, made his fortune by taking big risks.
Jan 5, 2021
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Business
Home-sharing giant Airbnb was set for its Wall Street debut Thursday with a whopping $47 billion valuation amid a feverish rush for new shares in companies adapting to lifestyle changes imposed by the coronavirus pandemic.
Dec 10, 2020
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The medical arm of Chinese e-commerce giant JD.com soared 75 percent on its debut in Hong Kongon Tuesday, valuing the company at $50 billion, as investors bank on the pandemic boom in digital health services.
Dec 8, 2020
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A US watchdog report has found no "evidence of misconduct" in the processing of a government loan to Kodak that was subsequently suspended pending investigations into the deal, the Wall Street Journal reported Sunday.
Dec 7, 2020
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Home-sharing giant Airbnb, which is scheduled to go public this week, will significantly raise its IPO price, valuing the group at more than $40 billion, the Wall Street Journal reported Sunday.
Dec 7, 2020
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Markus Braun, the former chief executive of disgraced payments giant Wirecard, faced a public grilling by German lawmakers Thursday over the massive accounting fraud that brought down his firm.
Nov 19, 2020
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Apple shares were sent reeling Thursday on word of a steep drop in sales of iPhones, which are at the heart of the tech titan's money-making engine.
Oct 30, 2020
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German industrial giant Siemens on Monday spun off its energy division, with a below-expectations valuation of 16 billion euros, in one of the largest stock market debuts in Europe this year.
Sep 28, 2020
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Shares in China's biggest chip maker tumbled Monday on reports that Washington had imposed export controls on the company, the latest salvo in the battle for technological dominance over Beijing.
Sep 28, 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