2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The share price is the price per unit of shares at a certain point in time. Economists estimate the direction of the exchange rate based on the price in the past and present, trying to predict it in the future.
What is a promotion
A share is a security issued by an open or closed joint-stock company. A share of an OJSC is freely traded on the stock exchange, while a security of a CJSC is only among the shareholders who founded the company. It is issued to raise funds necessary to maintain and develop the enterprise. Both private and public organizations can issue shares. They represent the value of all assets in the company.
The real stock price may be higher than the nominal one. The nominal value is calculated on the basis of accounting data. The real includes both the accounting value of the company and its reputation. Shares are issued in non-documentary form. The owner of a share has the right not only to receive a share of income in the form of dividends or a part of accounting profit, but also the right to manage the company. He can also count on receiving part of the property in the event of liquidation of the enterprise.
Where to buy shares
Shares of open stockcompanies can be purchased on the stock exchange. In order to gain access to this market, you need to register on the website of some large Russian bank and download the appropriate program. Through the mediation of banks, you can only buy shares of Russian companies.
For those who want to buy shares of foreign companies, in order to gain access to foreign markets, you need to register on the FINAM website. Only this organization provides access to foreign exchanges. It should be borne in mind that completely different factors affect the stock price there. This is due to the fact that foreign stock exchanges have their own trading rules and have completely different requirements for traders and investors, including foreign ones.
Types of shares
There are two types of shares: preferred and common. Preferences differ from ordinary ones in that they give the right to receive not only dividends, but also a part of the company's accounting profit. They give an advantage in voting at the board of shareholders and receiving part of the property in the event of liquidation of the company. Not always privilege means a high share price. This is connected not only with demand, but also with the accounting policy of the enterprise. In some organizations, the owners receive a large share in the management of the company, but at the same time, dividends on preferred shares are less than those on ordinary shares.
Classification by price
These securities are also classified by price. In accordance with the exchange rate, the shares are called:
- Cheap. They are also called pennies. These are the securities of the most low-liquid companies. But this does not mean that they will always be so. There is one of two things: either the organization will go bankrupt, or the price will go up.
- Underrated. Some companies that at first sold penny shares are now giant corporations, and their securities are the most expensive. The work of a stock speculator comes down precisely to identifying such enterprises on the market and buying their shares.
Blue chips. These are the shares of the largest and most expensive companies with a high stable rate for a number of years. For example, companies such as Gazprom, Rosneft, Rostelecom can be noted
This classification is especially relevant for traders and investors with limited capital. Cheap and undervalued companies are volatile. Their securities can both rise and fall. However, they rarely pay dividends, preferring to invest in expansion, while blue-chip holders can expect an annual dividend.
Factors affecting stock prices
A share has a nominal price when issued. It is usually calculated on the basis of the book value of the company's assets and the amount of investment that it can attract. After publication on the stock exchange, other factors influence the price.
The rise in the price of shares, like the fall, depends on the demand for them. The following is a list of factors that affect the level of demand andstock price:
- The financial condition of the company. Financial statements are used as the main source of information about this. The trader checks the liquidity of the company, the profitability of production, the ratio of income and expenses, growth dynamics, the probability of bankruptcy.
- The state of the economy and the stability of the political system of the state. High inflation, low incomes, revolutions, wars, financial crisis - all this affects the stock price.
- The state of the world economy. The Russian economy is connected with the economies of other countries. Changes in supply and demand for certain goods produced in the Russian Federation affect the stock prices of companies that produce these goods.
- The number of players on the exchange and the amount of money that circulates on it. The profitability of the organization, the prospects for its existence and development depend on these factors.
Sudden changes have a strong impact on the stock price. For example, changes in tax legislation, a change in the political regime. Even the discovery of a new deposit could affect him.
Methods of assessment and analysis
There are two methods for evaluating stock prices - technical and fundamental analysis. Each of them requires certain skills and knowledge. In technical analysis, the chart is studied. It is believed that it reflects the dynamics of the stock price and includes all factors that affect the price. The forecast of the future price is based on the history of the security. Various templates are used as tools, buildingfigures. In fundamental analysis, not a chart is used as a source of information, but factors that affect or may affect the financial condition of an enterprise.
It includes a check:
- financial statement indicators;
- statistics;
- political and economic situation in the country;
- information provided by rating agencies.
When using this method of evaluation and analysis, special programs are used to predict prices in the future, perform complex calculations, compare the correspondence of the current market reaction with that of the past to a similar event. Fundamental analysis is more difficult than technical analysis, but this does not mean that it is better or worse. Traders and investors in their activities use both methods to get more complete information.
Where can I find quotes
Quotes and stock prices can be found in the window of the trading terminal program or on the website of the Moscow Exchange. This information is also published on the FINAM website. You can find out the state of the market by phone by calling your broker. But just remember that such a service is paid in all banks.
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