Question

reasons that could possibly accounted for the share price decline

reasons that could possibly accounted for the share price decline

Homework Answers

Answer #1

There are several reasons that could be possibly responsible for a share price decline-

A. Change in the earning estimate on the downside of the company can lead to decline of the share price

B. Change in the macro factors such as inflation and interest rates in an economy which can lead to decline in the growth of the company.

C.fraudulent practices by the board of director can also be a reason for the decline in the share price.

D.insider trading by relevant persons and selling of the shares by those insiders can be the reason for decline in the share price.

E. Downgradation of the company future prospects by an investment agency can also be a reason for decline in share price

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bonus: Assume iX Nuts was a listed entity with a share price of $10/share and an...
Bonus: Assume iX Nuts was a listed entity with a share price of $10/share and an investor acquired 1% of the company for $10,000. The company paid a dividend of $1 share per share at year-end and the share price had moved to $12/share. 1. What is the company's dividend yield? How would the investor have 2. accounted for the investment upfront and how would the change in investment be accounted for at year-end? 3. What could the investor do...
what is the largest angle of refraction you could possibly have?
what is the largest angle of refraction you could possibly have?
List 5 reasons that can explain the decline in unions over the last 30years.
List 5 reasons that can explain the decline in unions over the last 30years.
Draw the mechanism for the formation of the competing substitution product that could possibly form in...
Draw the mechanism for the formation of the competing substitution product that could possibly form in the synthesis reaction of cyclohexanol to cyclohexene. Briefly give an explanation as to why it is the minor product.
Discuss the three plausible reasons why stock prices tend to decline following the announcement of a...
Discuss the three plausible reasons why stock prices tend to decline following the announcement of a new equity issue, but tend to rise following a debt announcement.     
In regards to the Efficient Market Hypothesis which one of the forms of information could possibly...
In regards to the Efficient Market Hypothesis which one of the forms of information could possibly include insider trading issues? A. The Strong B. The Martha Stewart C. The Weak D. The Semi Strong
1. Discuss the effect market sentiment could have on the theoretical share price. (3 marks)
1. Discuss the effect market sentiment could have on the theoretical share price.
Suppose you believe that Du Pont's stock price is going to decline from its current level...
Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 80.66 sometime during the next 5 months. For $ 608.58 (Initial premium) you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 79 per share. If you bought a 100-share contract for $ 608.58 and Du Pont's stock price actually changed to $ 88.31 at the end of five months, your net...
Briefly describe the announced reason and some other potentially plausible (possibly unannounced) reasons why the US...
Briefly describe the announced reason and some other potentially plausible (possibly unannounced) reasons why the US Federal Reserve wanted to cut the rate (2020). Using the tools of economic analysis, explain how the announced rate cute decision (2020) will achieve its stated aims. Note any unintended consequences of the policy, briefly describing how they might arise. With your own words, do not copy-paste from the internet.
When public health officials are interested in determining the number of cases which could possibly be...
When public health officials are interested in determining the number of cases which could possibly be prevented by eliminating a risk factor, which measure of association would they be interested in? a. Risk ratio b. Odds ratio c. Risk difference d. Prevalence e. Incidence in the exposed group