Stock mkt indices We should have indices based on industrial grps like Tata, Birla, reliance, mahindra, etc?
Answers: THERE are no such indices uptill now, perhaps it wont be , cozit causes some irregularity.
Once someone buys stocks from a company at the IPO, surrounded by what channel does the company generate money?
Even though they generated money and assets in the foundation, won't they still have to discharge it back surrounded by the end if the company closes down. So afterwards the money won't be theirs...Answers: You, as a common stock holder is the one in actual fact own part of the company except that you do not own a lot of say. There is a group of people who are running the company for you.
During the IPO, the company first sell a portion of the company to the public to the absorb working funds. On an on going basis, the company sell the goods or services to generate the revenue. On the other mitt, the company might generate bonds or borrow money from other financial instituations, companies, known as creditors for some other uses. They are the one who would achieve their hands on the money and assets when the company go down.
Do you seriously think at hand are still money left?
If they are an rime cream company they sell rime cream and make money. Etc.
Stock entitles you to a share of the profits of the company. However, if the company goes out of business you are entitled to nothing.
Once you buy stock, you own a share of that company. If they close down or step bankrupt, later you receive nothing. However if they do markedly well and someone buys them (merger), afterwards they will pay you for your shares. If the company go private again, then they will also discharge you for your shares. The price will be detrermined by what the company is worth.
Price/Book Net Profit Margin Price/Sales?
What is a good number inventory for:Price/Book
Net Profit Margin
Price/Sales
Answers: P/B <1
Net Profit Margin >50%
P/S depends on the industry, the lower the better