After Tesla price cut, Ford follows suit with Mustang Mach-E
Ford is cutting prices on its Mustang Mach-E electric SUV by as much as $6,000 just weeks after market leader Tesla took similar steps.
Jan 30, 2023
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Automotive
Ford is cutting prices on its Mustang Mach-E electric SUV by as much as $6,000 just weeks after market leader Tesla took similar steps.
Jan 30, 2023
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Business
Elon Musk's enigmatic personality and unconventional tactics are emerging as key exhibits in a trial revolving around one of his most polarizing pursuits—tweeting.
Jan 29, 2023
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Business
Shares of Tesla tumbled more than 12% Tuesday on the first full day of trading since the company announced 2022 delivery numbers that fell short of targets.
Jan 3, 2023
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Business
The U.S. Securities and Exchange Commission is denying allegations that it is violating Elon Musk's free speech rights by trying to enforce a 2018 securities fraud settlement.
Dec 23, 2022
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Business
Over recent months, tech companies have been laying workers off by the thousands. It is estimated that in 2022 alone, more than 120,000 people have been dismissed from their job at some of the biggest players in tech—Meta, ...
Dec 6, 2022
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Business
Tech and biotech companies have revealed plans recently for enough job cuts to erase more than 6,000 jobs in the Bay Area, cutbacks that could weigh on the region's economy in the weeks and months to come.
Nov 22, 2022
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Internet
A Twitter imposter cost a US pharmaceutical giant billions of dollars, but the viral prank triggered another unexpected crisis—a new wave of scrutiny of the high cost of its insulin.
Nov 15, 2022
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Business
"I want to take accountability for these decisions and for how we got here," tech billionaire Mark Zuckerberg told the 11,000 staff he sacked this week.
Nov 10, 2022
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Internet
Summertime revenue growth at Google's corporate parent slipped to its slowest pace since the pandemic jarred the economy more than two years ago, with advertisers clamping down on spending and bracing for a potential recession.
Oct 25, 2022
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Business
Elon Musk has served former Twitter boss Jack Dorsey with a subpoena in a hunt for material to help him get out of buying the giant social media platform for $44 billion as agreed.
Aug 22, 2022
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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