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
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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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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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
Even in an industry famous for its rollercoaster cycles, chipmakers are bracing for a particularly severe shift in coming months, when a record-setting sales surge is threatening to give way to the worst decline in a decade ...
Aug 16, 2022
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Business
After more than a year, aviation giant Boeing will be allowed to resume deliveries of its 787 Dreamliner aircraft "in the coming days," after the company made changes to its manufacturing process, US air safety regulators ...
Aug 8, 2022
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Business
Google's revenue growth during the past quarter decelerated to its slowest pace in two years as advertisers reined in their spending amid intensifying fears of an economic recession.
Jul 26, 2022
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Business
Netflix has picked Microsoft to help deliver the commercials in a cheaper version of its video streaming service expected to launch later this year with a pledge to minimize the intrusions into personal privacy that often ...
Jul 13, 2022
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Business
Tesla proposed a three-for-one split of its stock on Friday, a move that will make a single share of the electric car maker more accessible to investors but not affect the company's overall market value.
Jun 11, 2022
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Consumer & Gadgets
Apple on Monday provided a peek at upcoming tweaks to the software that powers more than 1 billion iPhones and rolled out two laptops that will be the first available with the next generation of a company-designed microprocessor.
Jun 6, 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