Investing Questions and Answers

Any institutions providing classes for share trading within chennai?

I want to enter in to share trading/Mutual Funds but beforehand that i want to know some more details about that? is in that any institutions in chennai providing classes/training in relation to share trading


Answers: log on to icicidirect.com. They are conducting regular classes. Check for their schedule

If a company's stock crashes, does the company in actuality lose any of its own money?

If a company's stock value plummets, does the company lose money? Can a company potentially step bankrupt that route?

Thanks!


Answers: I am a financial economist and the answer is in almost adjectives cases no, it has categorically no impact at all. The price of a stock is the price an existing shareholder will return with if they try and sell it to a potential adjectives shareholder.

There are only three circumstances where on earth a crash in stock prices can impact the companies currency.

1) Where it has debt covenants tied to its stock price and must salary down debt in the travel case of a fall within price (this is the really stupid covenant that brought Enron down). You rarely see these anymore in a minute that the stock bubble is over, they were really dumb thinking.

2) The company has a defined benefit income plan partially funded beside company stock. A drop in advantage of any asset in the plan is a cost to the company.

3) The company is preparing an offering any of a bond issue with warrant attached to the bond, tied to the stock price, or a subsequent stock issuance. In those cases, the company may not be able to find additional funding.

IBM's price, for example, or Apple's price could slump to one penny per hundred shares, but the company would see no direct impact. It would still be worth, in intrinsic effectiveness, the same amount as beforehand the crash, but no one will buy it and since a stock minus a price is essentially worthless, you would see angry shareholders screaming at management to do something, which is also usually outside management's power to do anything about contained by the short term. Such a circumstance can be a great opportunity to kind future money.
A company's stock just about ever crashes for no reason. It could be temporarily oversold. The bazaar isnt efficient contained by the short term. But the worth of the stock is the present value of adjectives cash flows. If it crashes it usually routine lower value of those brass flows for shareholders. It could be because of lower earnings than expected. Or illustrious debt, which could lead to lower brass flows to shareholders. And that debt could possibly lead to collapse. So if a stock crashes it usually means the company isnt making money , and the shareholders lose money because the stock crashed. The assets of the company still enjoy value, but the company, the entity, no longer does, because they arent generate cash flows from those assets, and/or they own too much debt.

If today I bought $500 of apple stock and $500 of G00GLE stock and wait a yr, how much $ do u guess psyche generate?

I know nothing going on for the stock market but I'm curious what my income would be if for example I went near G00GLE and apple, two relatively large, safe and sound companies.


Answers: $120, a 12% return. You'd double the market return next to your riskier stocks.
Ive played fantasy stock exchange for a while. Apple have risen about 5 percent since July while G00GLE have nearly doubled. I would put money on G00GLE. But with the introduction of exotic products, maybe apple is on to something. Id influence u would make, possibly... 300

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