next plc ratio analysis
Efficient market hypothesis
and
stock price movements
Corporate finance, Lecturer-David Mutlow, 31/10/13 Student no-21185372
Contents
1. Introduction
2. Fundamental and Technical analysis
3. Efficient market hypothesis
4. Causes of efficient market
5. Empirical evidence
6. Conclusion 7. Bibliography
1) The price of the stock is determined by demand and supply. The supply is based on a number of shares issued by a company. Demand is created people who need to buy the shares if demand of the share price increase means that share price is going up so the investors need to pay more for it. If the stock is limited then the investors can only buy from previous owners.so if one person wants the share the other need to prepare to sell.
Prices go up until the demand of share price. When the price goes up no one need stocks so it started to fall.
2) When we are going to choose a share we need to look the business and products of a company and also looks at its accounts, Earning per share and prospective dividends. Other factors such as inflation rate, currency level interest rate and consumer demand. Additionally the competitors are examined along with the efficiency of management. This analysis is called as a fundamental analysis this concentrates on the true value of the company. The company accounts reflect the true value of information better than economic information.
Concern with the
and
stock price movements
Corporate finance, Lecturer-David Mutlow, 31/10/13 Student no-21185372
Contents
1. Introduction
2. Fundamental and Technical analysis
3. Efficient market hypothesis
4. Causes of efficient market
5. Empirical evidence
6. Conclusion 7. Bibliography
1) The price of the stock is determined by demand and supply. The supply is based on a number of shares issued by a company. Demand is created people who need to buy the shares if demand of the share price increase means that share price is going up so the investors need to pay more for it. If the stock is limited then the investors can only buy from previous owners.so if one person wants the share the other need to prepare to sell.
Prices go up until the demand of share price. When the price goes up no one need stocks so it started to fall.
2) When we are going to choose a share we need to look the business and products of a company and also looks at its accounts, Earning per share and prospective dividends. Other factors such as inflation rate, currency level interest rate and consumer demand. Additionally the competitors are examined along with the efficiency of management. This analysis is called as a fundamental analysis this concentrates on the true value of the company. The company accounts reflect the true value of information better than economic information.
Concern with the
Bibliography: A guide to investing in the stock market The definitive companion to investment and the financial markets (Glen Arnold) The new finance (Robert A.Haugen) www.Investopedia.com The efficient market theory and evidence The efficient market hypothesis and application Stock Market Efficiency, Insider Dealing and Market Abuse