What is stock quotes?
Question:
Answer:
A quote is the last price a public sale of the stock took place at. It also usually reflects the day after day volume(the number of shares sold) and it usually also shows the percentage of change since the initial bell of the trading day.
That is only just the current price at any given moment for a publicly traded stock. There are always 2 prices: the bid price - the most someone is offering to earnings for it - and the offer price - the cheapest price someone is ready to sell for. When those prices equal, a transaction take place, a sale, and the subsequent people within line enjoy their prices shown.
It is a current price of a stock
Get free Quotes & Trading tips for Indian Stocks market approaching NSE from Site like http://indianstocksnse.blogspot.com...
Current Price of the stock.
Bid Price & Offer Price
Read our FAQ's
Indian Financial portal providing information on
- Which shares to buy
- When to buy shares
- When to exit shares
- Which IPO to subscribe and which to humiliate
- Which NFO (New Mutual Fund) to enter
http://www.vjondalalstreet.com
Bus Naam hi kaafi hain ...
Penny stocks -- have anyone in truth made money next to these things?
Question:
Answer:
I'm making great money on CPNLQ, and I'd greatly appreciate it if you would buy some and run the price up even more so I could sell it and seize my money back.
Most family don't. If you get an email around a penny stock, it's part of a "pump and dump" development. They buy it first, send out lots of emails, and when the price go up a little, they're the first ones out and you're stuck next to it. I'd stick with standard stocks that wage a dividend: that way, you get money just by buying it and holding on, not buying and selling.
I made 100% on Greenman Technologies, and 200% on Jacobson Resonance Enterprises and several other penny stocks later year. But overall I lost more money than I made. I lost 100% on IBIZ Tech, and nearly 90% on Silicon Graphics. Of course, in both of these stocks, I lost money because I didn't follow my rules.
Trading penny stocks is profoundly different than trading "normal" stocks, because many of the trading rules that you scholarly do not work with penny stocks. For example, most investors/traders enunciate you should invest your money in one or two stocks and keep watch on them closely. If you do that with penny stocks, you could slickly lose all your money within a short time, because penny stocks can dive very express and there's no liquidity. So, you need some different strategy here.
If you own a method for selecting smash penny stocks that will perform immensely well, later collect 10-20 of these potential winners and buy adjectives of them. That way your risk is spread, and if one of those stocks doesn't do what you expect, you're still contained by the game. Putting lots of money within a single penny stock is a dangerous entry. Only invest as much as you're willing to lose.
I've found that precise analysis works for penny stocks the same channel it works for any other stock. Penny stocks can jump up several 100% contained by a matter of days. Like earthquake, these jumps are recurrently preceded by subtle tremors that indicate that something is about to appear. To detect these small changes within price and volume, you have to study the charts tremendously carefully...
Yes it's best to use your speculative change on it most portfolios have especially little Penny Stocks in them
penny lovers read it and start bawling close to little chumps.
http://www.pinksheets.com/about/pr_04120...
and pgc since you love pk stocks ending next to Q how much money did you make near DARLQ.PK?
Would you a bit own ??
Question:
trading expenses aside would you rather invest 100 dollars contained by one new stock every month or 10 dollars contained by 10 stocks every month?
yes I also own MF's so I am not asking about that, newly shares of stock.
Answer:
Since you already own mutual funds, we'll assume that you are already at least somewhat diversified. In that skin, the 100/one stock scenario is much to be preferred, primarily since the commissions on 10/10 would chew up most of your anticipated return.
Note that if you had no other investments and be just starting out, I would enjoy recommended mutual funds first. And in that armour, if you had vetoed mutual funds, probably as a second option not a 10/10 approach but perchance a 5-stock approach, using something like Sharebuilder to know how to diversify more cheaply.
I would rather invest 100.00 surrounded by one stock every month for a higher return on my money. Ten dollars would filch forever.
neither
100 dollars in one unknown stock every month. But you do have to hang on to in mind trading expenses. They can affix up. So keep pumping the money into your reason, but only buy close to once a month.
I would invest $100 in one stock. Since $100 is peanuts for me I would probably travel for the riskiest stock option. Win it adjectives or loose it all.
How is it announced when unusual stocks become available on the marketplace?
Question:
I live in NS, Canada and I'm curious to know where on earth it is announced that new stocks are on the marketplace.
Answer:
New issue US stocks either hold highly publicized IPO's (Initial Public Offerings) or enter the bazaar without any spot by taking over a dormant ticker symbol, in which skin you have to know someone at the company.
A big outmoded fat man call a town crier gets dressed up within crazy clothes and stands in the middle of town at midday, rings his bell and shouts Oh Yeigh Oh Yeigh and shouts them out.
New stocks individual offered for sale by a company is call Initial Public Offering. This is done through 'Tomb stone' advertisement contained by Financial papers and other publications loitered by investing Public. The advertisement have borders that look like a Tombstone so it is call tombstone advertisement. So seeing this tombstone one can understand that a new stock is human being offered for sale.
I enjoy no clear idea almost Canada stock trading but stil li can let you know th egeneral procedure of announcing a up to date stock.
1.It will be made available to all the brokers website where on earth a lot of traders have opened article with them.so that the company's stocks go and get noticed directly
2. Finance journal and magazines are also used to advertise the Initial Public Offer(IPO).
3.In some cases this ipos are made available in the bank so that the banks customers can directly checkout the grant.
4.If you checkout the websites which are specialist in providing information around the stock market , you can find the IPOS which are individual offered on different dates.
these are someof the ways to find the untried stocks or IPO.
Is at hand time proven best investment strategy contained by stocks which works within any flea market beside small but sure returns?
Question:
Is there time proven best investment strategy surrounded by stocks which works in any bazaar with small but sure returns?
Answer:
1) Buy strong companies near good dividends. I own the world wrestling entertainment (WWE) and even if the stock never moves I draw from a guaranteed 6% return.
2) Focus on proven stocks that are "on sale". Some times good PROVEN companies price falls because of one unpromising quarterly earning. The truely evolved will buy up these stocks because more than feasible they will go backbone up.This is how Warren Buffet became a billionaire.
Just guessing ( not " proven") I would utter a couple of " balanced funds...and some stock surrounded by " staples" Procter, Johnson & Johnson, Kroger.... even if times get impossible, people buy food and perchance band-aids !!
Read "How to Buy Stocks without a Broker" by Chuck Carlson. If you buy stocks that retribution dividends, it will pay you to own them. If you use "Dollar-Cost Averaging" to buy them, you buy more when the price is lower, automatically, freshly by investing the same dollar amount every month. It really works. You can also investigate the "Dogs of the Dow" hypothesis, which he writes about, and it's also on the Motley Fool website: www.fool.com.
Yes. (25% Annually)
In lay down of the "sureness"
1.) US. Government securities like T-bills, T-notes, and T-bonds. Very low returns, guaranteed.
2.) US Corporate Bonds (AAA rated). Low returns, not exactly guaranteed, but close plenty that you can't really tell the difference.
...but neither of these two are stocks.
If you insist on investing surrounded by stocks, then you're prepared to hold your investment for at least 10-years, later a good bet is to dollar-cost average an S&P 500 Index fund, approaching Fidelity's Spartan, or Vangaurd's. Both charge insanely low fees, and track the S&P 500, which has never be down over a 10-year period.
You must swot to read technical charts. Once you know that, you would fitting.
In the meantime, you might want to visit website and gain (maybe)
Indian Financial portal providing information on
- Which shares to buy
- When to buy shares
- When to exit shares
- Which IPO to subscribe and which to look right through
- Which NFO (New Mutual Fund) to enter
http://www.vjondalalstreet.com
Bus Naam hi kaafi hain ...
In a Bear Market, where on earth does one place their money if both bonds and stocks reservoir?
Question:
Answer:
One strategy is to go to money marketplace, wait for the bottom and when the marketplace starts to recover, buy support in.
Another strategy is to buy put option. Check out Optionsxpress.com. They can educate you and set up an depiction. Puts make money when a stock drops. And when a stock drops, it can drop briskly, so big money is available in undergo markets.
money souk funds
Thats a great time to buy low
Under your mattress or in a Mason jar buried within your back patio.
you sell stocks short. freshly as much money can be made when the market go down as when it goes up.
Cd's,money market and hard assets.
Just a guess; If I have 10 g to play with after the comodity markets. The problem is next to so many institutions vying for fractions of a percent, is that adjectives we're left beside is good ol home grown knowlege. Stick to what your familier beside and try to "buy" some knowlege. Corporations have be at this game for some time buying the most modern "Object" buy hiring someone tied to it.
If you could predict the future and know where on earth to put it before it occur, then surrounded by a bank money bazaar fund (they pay better than the mutual fund mixed bag right now).
If the market tank, then it is too unpunctually and you should not leave the flea market as you should then be buying.
Gold. Although your scenario is unlikely, it is possible.
i would buy etf's that short the souk. examples DXD shorts the dow 30 at 2 to 1; MZZ shorts the midcap 400, also at 2 to 1 (if the dow or midcaps, or whatever go down 5%, these etf's will go UP within value by 10%). some other 2 to 1 leveraged short funds are: QID - shorts the QQQQ, SDS - shorts the S & P, SDD - shorts the smallcap 600, and TWM - shorts the Russell 2000. in attendance are a lot of others that short sector or indexs on a 1 to 1 ratio, also.
Stocks.
You really need to buy the Blu-Ray "Casino Royale" starring Daniel Craig if you want to swot up what is a short sale.
Options Debit Spreads?
Question:
I was wondering when it comes to alternative debit spreads...is exercise a likely occurence? I am a admirer of credit spreads because I get the money upfront, but I want to hold every weapon possible when it comes to trading. I am looking for trader's opinions. The individual thing I am worried almost with debit spreads is exercise...should I be and what is the best process to make profits while reducing the probability of exercise? Thank you adjectives very much.
Answer:
There are a couple of points that have need of to be cleared up before getting to the answer to the examine.
First, the ability to "exercise" an opportunity only exists near a long option position. When a long remedy position is exercised, a short option position is assigned. What is possible, and not below your control, is early assgnment.
Second, the possibility of assignment has nought to do with the resort being factor of any kind of spread, debit or credit. If a stock is at $50 hasty assignment is more likely near a (long $50/short $55) put credit spread than with a (long $50/short $55) give the name debit spread.
It is a given that for an American-style settlement option assignment can take place any time. There have even be instances where at hand have be assignments on out-of-the-money options, although you are unlikely to ever see it. Consequently, I would recommend you avoid any short likelihood positions where rash assignment would cause you difficulties.
The actual question become "when is early exercise potential?"
For a call resort, the only time a knowledeable selection trader "should" exercise a long option position impulsive is just since a stock goes ex-dividend and the dividend exceeds the amount the leeway price will decrease when the stock go ex-dividend. (If you are familiar near "the greeks" you can use delta to make this determination, otherwise simply understand that the larger the dividend, and the closer to expiration, the better it is to exercise the call upon option precipitate.) As a call pick writer, that means the simply time you are likely to see impulsive assignment is when the stock goes ex-dividend beside a substantial dividend. It the stock does not pay dividends you are pretty unlikely to receive an early assignment.
If you write a put odds, dividends are not a significant factor in determining if you are feasible to receive an early assignment. Instead, simply took at the current bid quote of the chance. If the bid quote is less than the intrinsic significance of the option, here is a realistic fortune that you will receive an early assignment.
I see that depending on your options expertise this answer might be difficult to follow. Other people hold asked about the risk of untimely assigment on the Yahoo message boards at
http://messages.yahoo.com/business_%26_f...
and
http://messages.yahoo.com/business_%26_f...
so if you want to find other answers to the same grill you can go to those boards and use the furrow function to look for "early assignment".
As long as the price of the underlying is above the strike of the long option in the spread, you're okay. If you're close to expiration, buy the shorts final and sell the longs.
When you achieve into trouble is when the price of the stock is above the strike of the short options, but BELOW the strike of the longs. If you're close to expiration, close the spread for a loss to avoid exercise.
How do I best minimize my downside risk when purchasing biotech stock shares?
Question:
I am considering starting to buy puts in an equal amount to the number of shares I hold purchased. Does this make sense? What is the potential downside?
Answer:
hello,
Ok this is the agency the institutional investors and hedge funds do it, and it does work capably. Once you buy your company, you have two option.
1) put in a "trailing stop loss" directive of at or just above the purchase price. What a "trailing Stop loss" does is it keep a sell decree in place and moves beside the stock, on the way up. So if you bough surrounded by at 10 and yoru trailing stop loss was 2 points, at first the stock would enjoy to go down to 8 up to that time it was automatically sold, HOWVER, if the stock go to 20, the new trade limit is 18.
2) if you bought the comp at 10, buy the a "put" choice for on two or even 6 months out. If the stock goes down below the strike price of the "put" you can next sell the opportunity and reclaim your money. Hope this helps
Place Stops at 25% or smaller number for all your shares.
Indian Financial portal providing information on
- Which shares to buy
- When to buy shares
- When to exit shares
- Which IPO to subscribe and which to pay no attention to
- Which NFO (New Mutual Fund) to enter
http://www.vjondalalstreet.com
Bus Naam hi kaafi hain ...
What does it tight to right to be heard that amount is"designed into"a product?
Question:
Answer:
It's made in respect for mass production........ It could be efficiently made on an assembly line, or can be put together using few machines. Of course this is habitually a substitute for the products quality, however is usually cheaper to label.
Not quantity, competence!
Someone told me bonds are not the divergent of stocks. What does this anticipate?
Question:
We were chitchat about investing and I mentioned bonds. He said I be not hedgeing but instead diversifying. What does he mean? I thought the guide was bonds be in motion up when stock go down. Shouldn't money flow to where on earth the best returns can be made? Just curious.
Answer:
YOU JUST HIT ON ONE OF MY PET PEEVES, MY FRIEND. I AM A CHARTERED FINANCIAL CONSULTANT FOR 20 YEARS, PAST PRESIDENT OF MY LOCAL CHAPTER IN 1993, AND I JUST CRINGE WHEN I HEAR THIS ONE.
STOCK IS OWNERSHIP OF THE COMPANY. THE VALUE OF THE COMPANY GOES UP AND DOWN, AND YOUR SHARE OF THE VALUE GOES UP AND DOWN PROPORTIONATELY. YOU MAY GET SOME DIVIDENDS, ETC.
BONDS: YOU ARE LOANING MONEY TO THE COMPANY AND THEY PROMISE TO PAY YOU INTEREST AT SOME RATE FOR A SET TIME FRAME, AND TO PAY YOU BACK YOUR PRINCIPAL AT A CERTAIN TIME, JUST LIKE GOVERNMENT BONDS OR MUNICIPAL BONDS DO.
SO THEY ARE 2 DFFERENT TYPES OF INSTRUMENT TOTALLY. NO PROBLEM, SO FAR.
THIS MAY BE BEYOND YOUR QUESTION, BUT IF YOU'E INTERESTED, READ ON. BOTH STOCKS AND BONDS CAN BE BOUGHT OR SOLD ANY DAY. THEY ARE LIQUID, PRICES CHANGE MINUTE BY MINUTE. YOU PROBABLY KNOW THAT ABOUT STOCKS.
BONDS ALSO GO UP AND DOWN. HERE'S HOW. SAY YOU HAVE A BOND PAYING 5%. NEW ONES PAY 6%. WHO WANTS YOURS WHEN THEY CAN GET MORE FOR THE SAME PRICE? THEY WILL PAY YOU LESS. ON A LONG TERM BOND, LIKE 20 YEARS, MAYBE THEY WILL PAY 80 TO 90 CENTS ON THE DOLLAR. THE HIGHER THE CURRENT RATES, THE MORE YOU CAN LOSE. THERE IS MARKET RISK, YOU CAN LOSE MONEY, EVEN THOUGH THE INTEREST RATE IS GUARANTEED IF YOU KEEP IT THE WHOLE 20 YEARS. YES, THIS EVEN HAPPENS ON US GOVERNMENT BONDS. SEE 1975 - 1980. PEOPLE GOT THEIR INTEREST, BUT LOST MORE IN PRINCIPLE - CLOSE TO 50% DROP!!
BIG PROBLEM!! IF STOCKS ARE LOSING, SOME BROKERS WILL TELL YOU TO MOVE TO BONDS, WHICH ARE SUPPOSEDLY "THE OPPOSITE", AND SAFE. WELL, WHEN RATES ARE RISING, BONDS DROP AND - GUESS WHAT - IT IS HARD ON THE STOCK OF COMPANIES, TOO. THEY PAY MORE FOR LOANS, BONDING, ETC. STOCKS AND BONDS CAN AND OFTEN DO DROP AT THE SAME TIME.
DO YOU SEE THAT DROPPING RATES BRING BOND PRICES UP AND ALSO HELP STOCK PRICES GO UP - LESS INTEREST EXPENSE LEADS TO MORE PROFIT?
FINALLY, YES, MONEY SHOULD FLOW TO WHERE THE BEST RETURNS CAN BE MADE, AND I WOULD ADD, THE BEST RISK-ADJUSTED RETURNS.
Bonds are nothing close to stocks. Just like apples are zilch like oranges (other than both human being fruits)
stocks and bonds are nothing a resembling but I don't know if I would go as far as to enunciate they are opposites. Basically stock is ownership of a company and you receive capital gain when the company does well and the share price increases. Bonds you are loaning the company money and you receive interest on these bonds and your money spinal column at the maturity of the bond.
Your friend be right when he said you where not hedging. Hedging is when a long and short position exist on alike stock to protect against a decrease contained by the market. these hedge could exist through long ownership of a stock and a put on the stock or a short on the stock. The short position will gain if the stock decreases surrounded by price offsetting the loss of the long position. In my assessment the put is better because if the stock substantially increases you will lose the premium paid for the put but the increase within the price will not be offset by a short position. There are tons advanced strategies that can be used to hedge. By the course a short position is where you label money if the price of the stock decreases.
as far as stocks and bonds moving together.
when interest rates increase the stock marketplace usually declines surrounded by prices because loans are harder to come by and expensive which allows less spending for corporations and more money required to clear off interest rates. Now if you have a bond that was paying 5% surrounded by times when interest rates go up to 7% what do you give attention to is going to happen to the price of your bond? are citizens going to want to pay more for a bond near a low yield or smaller number? of course smaller quantity so high interest rates also end in the price of bonds to decline. so the markets do usually move surrounded by tandem but not always. On bonds if you hold them till readiness you don't have to verbs about the wherewithal losses but you will be excepting a lower yield than the current rates
What things should you know in the order of a company back buying their stock?
Question:
I'm trying to learn how to research companies for buying my first stocks.
Answer:
Listen to or read the transcripts of the ending conference call, look at the be a foil for sheet, cash flow statement and income statement, the P/E surrounded by relation to other competitors and all recent report that may affect that stock. Look at insider transactions, look at most importantly the PEG and that by my thinking should be under 2 and the smaller quantity the better. Look at cash flow and debt --short permanent status liabilities---does the company generate enough change flow to pay short possession liabitities and are they generating a profit contained by general. I also look at some precise analisis -- moving averages and bollinger bands along next to candle stick charting to see trends and get the hopefully best entrance and exit spots possible when trading. Read the company website and you also must know what afternoon they are reporting their numbers. You should also have a awareness of what the whisper numbers are---whats really expected from the street. Go to whispernumbers.com for those. When trading maintain a pulse on the market on CNBC at the impressively least except a financial daily rag like Investors Business Daily. I also want to recommend Scottrade because they not just have a great trading platform, the hang on to commissions low and I cant stress the importance of that. Good luck beside your investments....
One important point that I have not long learned is that you should find out if the company is within the red. For example, Applebees is in debt and shuts down restaurants every year. However, Walgreens is booming. They build unsullied stores strictly from the profits that they make from their other stores, so they verbs to grow.
Good luck with your research!
look at how Warren Buffet invests
he does not buy internet stocks
for a righteous reason
most do not build any money
he belives in the nouns fundamentals that all business must brand name money and cannot go on by mere hype and inflated stock prices.
Check beside this Financial Consultant : www.554stocks.com
Excellent Analysis & Evaluation of Saudi Stock Companies
P/E P/BV D/P ROA ROE
I look at these things: Forward P/E and earnings. The go together sheet. You never want to buy a company with too much debt. Check out EBAY, almost no debt. I also similar to to look for trends going forward to see what the company is doing within its industry to stand out and build the best product/service. These are some stocks I personally resembling right now:
EBAY
CHL
NJ
MOT
CCL
All are companies that trade name tons of money here and overseas, so you get the benefit of the bland dollar. You also get low debt level and repectable P/E ratios. If you put some money to work surrounded by these stocks, you won't be sorry because adjectives are industry leaders and have recognizeable brand name.
Good Luck!!
Warren Buffett says buying a great company at a objective price is better than buying a poor company at a cheap price
How is Peter Lynch immediately? does he invest very soon?
Question:
i am from Taiwan. i am really interested in his amazing enthusiasm on investment. i read his 3 books. and i am curious what he doing now? can anyone report to me his web page or update information? thanks plentifully
Answer:
From wikipedia:
Though he continues to work part-time as vice chairman of Fidelity Management & Research Co., the investment guide arm of Fidelity Investments, spending most of his time mentoring young analysts, Peter Lynch focuses a large amount of time on philanthropy. He said he views philanthropy as a form of investment. He said he prefers to dispense money to support ideas that he think can spread, such as First Night, the New Year's Eve festival that begin in Boston within 1976 and has inspired similar events surrounded by more than 200 other communities, and City Year, a community service program founded in Boston within 1988 that now operate in 14 locations.
The Lynches tender money primarily in five ways: as individuals, through the Lynch Foundation, through a Fidelity Charitable Gift Fund, and through two charitable trusts.
The Lynch Foundation, which have $74 million in assets contained by 2003, supports education, religious organization, cultural and historic organizations, and hospitals and medical research.
i don't know what he's doing presently but i know that one of his financial people get fired because the poor guy spotted the enron disaster before it happen.
He couldnt care smaller amount about the average investor.
Here is a join to Peter Lynch information.
I'm looking for a worthy precious metals mutual fund.?
Question:
One similar to Vanguard's (which is closed). No-load and operating expenses not over 1.5%. Too bad Janus hasn't get one. I like Janus.
Answer:
I resembling the etf GLD --it basically mirrows the spot price of gold ingots -- but is one tenth the price of an ounce per share. I believe within the subsequent couple of months gold will break the seven hundred dollar resistance flaw and then start going up from in that.
Here's the returns, you'll need to check the other parameter that you're interested in, similar to expense ratio...
1yr5yr
(MIDSX)23.01%29.77%
(VGPMX) *20.30%30.85%
(OGMNX)20.03%27.08%
(OGMCX)19.48%26.54%
(OGMBX)15.45%26.32%
(TGLDX)15.39%27.50%
(OPGSX)14.45%25.97%
(IIGCX) 13.53%--
(FRGOX)12.70%23.39%
///
Sprott Asset Management has a precious metals fund that specializes within smaller companies that should rocket in price compared to the majors..But read the jargon and conditions, because they have a different headship fee schedual.
etf's are better lower expenses. Deutsch guard does have a commodity play on an ETF. DBC I deem is teh symbol
Here's a link to adjectives the gold funds compared to the American Gold Index.
http://www.fasttrack.net/family.asp?fam=...
Company misjudges reorder time needed to replenish its stock,how might this affect firm's finacial position?
Question:
Answer:
In the short run, the cash flow on their books will look great because they will receive the lolly from their sales but won't find invoices and pay out. They will soon suffer, though, as they will lose some sale due to empty shelves, and they may lose disgruntled purchasers, a incredibly big deal and longer enduring yet. If the problem last even a week or more, their quarterly report may be down. Most people wouldn't identify a financial problem until that came out. In some industries beside big ticket items, it could be just devastating. Huge sale lost, no chance to restore your health.
How is it determined what a stock's price is? And who determines it?
Question:
I don't understand how, everday, a stock's price is set
Answer:
There are two ways a stock is priced.
1. From the IPO (initial price offering.) The IPO is from the issuing company explicitly selling shares of ownership of their company to the public. The stock price is set by the company with the counsel of their investment banker. The issuing company receive the sale proceeds from these transactions, along near a hefty fee to their investment merchant banker.
2. In the secondary souk. Stock exchanges such as the New York Stock Exchange manage the trading of these stocks. The issuing company is not involved here. These transactions are between individuals similar to you and me. The price is set by what individuals are willing to discharge. Stock prices are usually determined by the quality of the ingenious issuing company and the company's earnings.
.
its determined by a company's implementation on each time...it rises when a company gets profits and falls when the company have losses...so its basically the marketplace forces or the price mechanism as we right to be heard that determines all this...
Value of stock C= d1/(1+ks)+d1(1+g)/(1+ks)^2+......
d1 dividend at year 1
d1(1+g) dividend at year 2
ks required rate of return on stock given by the formula ks=kfr+beta(km - krf) where on earth krf is the risk free rate, km the market retun and beta the stock volatility.
S5=stock price at year 5 given by D6/(Ks -g)
The philosophy of this formula which is call the dividend discount model is the numerator gives the strength of operation, g the strength of strategy and denominator the managerial success of a company.
When the stock price is below this price investors folk to buy these shares which drive the price to the highest point and when it go beyond the highest price investors market these share or shorts which drives the price down. This is the theory and philosophy of stock pricing or valuation.
Supply & Demand.
How much is available vs. how much do those want to pay for it.
You want to deal in your old sports car. If you've got a Honda you may carry more money for it vs. the equivalent VW model. There are simply more buyers that want Honda's than want VW's. There is also a limited number of Hondas within the market. There may also be more VW's than the open market is willing to buy.
Stocks work like peas in a pod way. I want to put on the market stock ABC Company for $50 a share. You only want to settle up $38 a share. One of us will lower or increase the price to secure the public sale. We'll do so based on what we reckon will "secure" the deal. if you won't budge.... are in attendance other people interested? (etc.).
IPods put up for sale close to list everywhere. There is simply more emergency than there is product available (either more iPods or no competitive products that are percieved to be as moral or better).
And so it goes............................. Supply & Demand!
Supply and constraint.