Iconoclastic Musk basks as Tesla shares soar
Elon Musk is some way away from his goal of sending millions of people to Mars, but Tesla's shares are heading into orbit on Wall Street, leaving conventional automakers in the dust.
Feb 4, 2020
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Business
Elon Musk is some way away from his goal of sending millions of people to Mars, but Tesla's shares are heading into orbit on Wall Street, leaving conventional automakers in the dust.
Feb 4, 2020
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3
Business
Ride-share giant Uber has sold its meal delivery business in India to Zomato, one of its local competitors, as it steps up efforts to achieve profitability.
Jan 21, 2020
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Business
British online takeaway delivery service Just Eat, the target of competing takeover bids, on Friday confirmed its appetite for a tie-up with Dutch peer Takeaway.com over a hostile offer by consumer-tech company Prosus.
Dec 20, 2019
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Business
Chinese internet giant Tencent and gaming titan Nintendo on Wednesday announced plans to launch the Japanese company's popular Switch console in China from next week.
Dec 4, 2019
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Business
Chinese online retail titan Alibaba has been given the go-ahead to list shares in Hong Kong, reports said Wednesday, in what could be the city's biggest IPO in almost a decade.
Nov 13, 2019
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Business
Uber shares skidded Monday after the ride-hailing giant reported widening losses in the just-ended quarter as it boosted investment in new services and features.
Nov 5, 2019
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Business
The head of Uber said Tuesday that the global ride services firm was counting on India, Africa and the Middle East for future growth amid investor fears about mounting losses and a slump in its share price.
Oct 22, 2019
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Security
Less than a week into 2018 and we may have already seen the year's biggest technology story. Researchers have identified a security flaw in the computer processors made by three of the world's biggest chip designers, Intel, ...
Jan 5, 2018
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Business
Deliveroo shares surged more than ten percent Thursday after the international food delivery app struck its first six-month net profit, an achievement described as a "major milestone" by its boss.
Aug 8, 2024
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Business
Donald Trump's media group said Tuesday it will launch a streaming television platform, but its shares continued to tumble on Wall Street.
Apr 16, 2024
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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