How is per-share market value calculated?
Investors explore the stock market to amass wealth. Analysts concern themselves with share price movements, to formulate strategy. Recognize the factors influencing market values, while building your portfolio.IdentificationCorporations finance themselves by selling stock at initial public offerings, or IPOs. Investment bankers are hired to price the offering by taking earnings power, assets and investor demand into consideration. From there, investors trade shares between themselves–setting market values by auction format.FeaturesEarnings drive per-share market values. Strong annual reports and economic news improve share prices. Conversely, falling sales figures cause stock prices to deteriorate. To calculate market capitalization, or the market value of a particular company, multiply its current share price times its number of shares outstanding.ConsiderationsShare market values compete with other assets. For example, high interest rates adversely affect stocks. At that point, bond
