How do I know whether I am paying the right price for the stock?
There are various factors that determine the value of a stock. Understanding these will help you to pay a price that reflects the true value of a stock. • Demand and Supply:In the short term, the basic economic theory of demand and supply determines a stock’s worth. So, when the demand for a stock exceeds its supply (that is, there are more buyers than sellers), its price tends to rise. And, when supply overtakes demand (that is, sellers exceed buyers), the stock loses value. However, these are short-term market trends, which tend to get evened out over a period of time. In the medium to long-term, a stock is driven by the company’s fundamental strength i.e. business potential, past performance, competence and credibility of its promoters and management, etc. • Growth potential: Investors are willing to pay a premium for stocks of companies that have the potential to increase their revenues and net profits. The greater this growth potential, the higher the premium given to the stock. I
There are various factors that determine the value of a stock. Understanding these will help you to pay a price that reflects the true value of a stock. Demand and Supply: In the short term, the basic economic theory of demand and supply determines a stock’s worth. So, when the demand for a stock exceeds its supply (that is, there are more buyers than sellers), its price tends to rise. And, when supply overtakes demand (that is, sellers exceed buyers), the stock loses value. However, these are short-term market trends, which tend to get evened out over a period of time. In the medium to long-term, a stock is driven by the company’s fundamental strength i.e. business potential, past performance, competence and credibility of its promoters and management, etc. Growth potential: Investors are willing to pay a premium for stocks of companies that have the potential to increase their revenues and net profits. The greater this growth potential, the higher the premium given to the stock. If a
There are various factors that determine the value of a stock. Understanding these will help you to pay a price that reflects the true value of a stock. Demand and Supply: In the short term, the basic economic theory of demand and supply determines a stock??s worth. So, when the demand for a stock exceeds its supply (that is, there are more buyers than sellers), its price tends to rise. And, when supply overtakes demand (that is, sellers exceed buyers), the stock loses value.This is a very common question. How do I find out if I’m selling my property at the right price? You need to collect information on two points: how much similar properties have actually fetched, and what opposition there is in the market on this very day. Don’t let anyone flatter you into wishing for the moon. There are plenty of agencies who, to get a job, will raise your hopes unduly. Start comparing by collecting details of properties of a similar age and type from your local paper’s property column. If an agent
