A stock market or equity market is a public entity (a loose network of economic transactions‚ not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008.[1] The total world derivatives market has been estimated at about $791 trillion face or nominal
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informed decisions about what stocks to buy or sell. Without fundamental value‚ one is set adrift in a sea of random short-term price movements and gut feelings. Before we can value a share of stock‚ we have to have some notion of what a share of stock is. A share of stock is not some magical creation that ebbs and flows like the tide; rather‚ it is the concrete representation of partial ownership of a publicly traded company. If XYZ Corporation has 1 million shares of stock outstanding and we hold
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Many years ago stock options were rarely used as incidental benefits for top executives. Nowadays‚ compensating employee whit stock options has become an increasingly common practice. Before the year 1996‚ only the intrinsic value method was used to record these transactions. This method distorted the issuer’s reported financial condition and results of operations‚ which could lead to inappropriate decisions taken by investors. Followed by the increased use of employee stock options and the surrounding
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Case for Chapter 3 PRIUS: Leading a Wave of Hybrids Americans love their cars. In a country where SUVs sell briskly and the biggest sport is stockcar racing‚ you wouldn’t expect a small‚ hybrid‚ sluggish vehicle to sell well. Despite such expectations‚ Toyota successfully introduced the Prius in 2000‚ and Honda introduced the Insight. The Prius‚ whose name means “ to go before‚” literally flew out of dealer showrooms‚ even if consumers weren’t quite sure how to pronounce it ( it’s PREE-us‚ not
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There is a market for partial ownership of companies where buyers and sellers come together it is called stock market. Capital is always flowing to companies that show themselves to be successful by ensuring high returns at a low risk for their investors. Therefore‚ when the stock market goes through its daily fluctuations‚ it is moving resources from areas of low yield to areas of high yield. As capital moves away from companies that cannot guarantee investors returns‚ it moves toward companies
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AUTOZONE Q#1. How has AutoZone’s stock price performed over the previous five years? What other financial measures can you cite that are consistent with the stock price performance? AutoZone’s shareholders had enjoyed strong price appreciation since 1997‚ with an average annual return of 11.5%. Over the previous five years‚ AutoZone’s stock price has increased dramatically. On February 1. 2012 the stock price was $348 compared to the $125 on February 1. 2007. The strong price appreciation
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Character and Point of View in “The Red Convertible” “The Red Convertible” is a short story by Louis Erdrich‚ in which two native American brothers named Marty and Henry decide to buy a red convertible Oldsmobile together. The two brothers spend much of the summer travelling around together in the car until the older brother‚ Stephan‚ is deployed to Vietnam. When Stephan returns‚ he is not the same and Marty tries desperately to recover their past relationship. The round‚ static‚ perseverant character
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If you bought a share of stock‚ what would you expect to receive‚ when would you expect to receive it‚ and would you be certain that your expectations would be met? 2. If most investors expect the same cash flows from Companies A and B but are more confident that Company A’s cash flow will be close to their expected value‚ which should have the higher stock price? Explain. 3. When is a stock said to be in equilibrium? At any given time‚ would you guess that most stocks are in equilibrium as you
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Stock repurchase is a special type of dividend. If there were no separate tax treatments between ordinary income and capital gains‚ and if a proportionate number of the shares were acquired from all stockholders‚ the economic effects would be almost identical for stock repurchase as for a cash dividend. If the stock is not acquired proportionately from all investors‚ stock repurchase is a special type of dividend‚ since it goes only to the stockholders who prefer cash compared to increased ownership
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convertible infant car seat‚ also known as an infant-toddler car seat‚ is one that can be used for both newborn infants as well as larger toddlers. Purchasing a convertible seat can save you money as it is the only seat you will have to purchase for your infant and toddler. If you already own an infant only seat‚ buying a convertible infant car seat will allow you to keep your young child in the rear facing position longer than transitioning to a toddler seat. For newborns and small infants‚ you
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