New answers tagged stock-valuation
2
Unless the stock price doubled suddenly, this makes no sense, and is simply an error in their website / display. Maybe the program is written dumb enough to double count the sold stock.
Either way, it will go away after some time, so no worries.
Unfortunately, this is not uncommon, many of the large brokerage houses have some incorrect data display right ...
-1
Dividends could be paid out to investors through cash dividends or stock dividends. In terms of the stock dividend, besides tax advantage when they don't sell out the shares compared to cash dividends, what are the other benefits from this?
A stock dividend is the combination of two:
Pay $X dividends
Sell Y shares to the one receiving $X dividends at a ...
0
Concepts like
"future growth is priced in..."
are just phrases, collections of words, which Economists, and similar, use when making TV appearances / writing articles, and so on, so that they can have paying careers.
Nobody has a clue, about anything, at all, about markets.
The sense of your question is basically:
"Is all this stuff about ...
5
My take, very much as a layman in stock analysis, is that EMH prices-in the expected (or predicted) future growth.
No one can know what the future will bring. Instead, based partly on past-performance (among many other factors such as how the company is run, potential markets for their goods/services etc.), people can make a range of predictions for future ...
3
If you believe in market efficiency, future growth is indeed priced in. With risky growth comes higher potential returns. In theory, this explains why there are outperformers even when the future is priced-in. The potential outperformance is sort of like a reward for taking increased risk. When you buy a "risky stock", you sign up for two main ...
0
Importance of a stock dividend? None. It doesn't matter.
At best, you could make a case that after a stock dividend then because you own more shares, the compounding effect could be greater.
A stock dividend doesn't affect total cost basis but since you now own more shares, your cost basis per share is lowered. So that means a bit of additional ...
1
After IPO, if the company wants to issue more stocks, does it issue at the market value?
Yes - it sells the new shares to the public for whatever they're willing to pay for it. Technically there's often an intermediary that buys all of the shares then help distribute them in the secondary market (since Facebook is not in the stock trading business), but the ...
1
The float is the number of shares sold to the public. For Facebook, it was 421 million shares. The rest of the shares are owned by venture capitalists with the vast majority owned by Zuckerberg (about 28%).
The are two types of secondary offerings.
A dilutive secondary offering involves creating new shares and offering them for public sale, usually near ...
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