Free Stock Market Tips

an old Priestess asked:


If I understand it correctly, a company issues stock and
sells it to raise capitol. Once they have sold the stock to
the public, and been paid for it, why should any changes
to the price of the stock matter to them anymore ?

In other words, how could it harm a company if people
sell off the stock and the value of it declines a lot ?

sherrie.glenn asked:


A stock that currently trades for $40 per share is expected to pay a year-end dividend of $2 per share. The dividend is expected to grow at a constant rate over time. The stock has a beta of 1.2, the risk-free rate is 5%, and the market risk premium is 5%. What is the stock’s expected price seven years from today?

nomethinks asked:


In other words, if company Y was to buy out company X for price P, how many shares N does it buy of company X?
How is this decision reached to by N shares at price P?
How can they maintain the buyout agreement stock price P amid the surge of demand volume they induce? That is, if they are planning on buying N amount of stock, how are they able to do this without significantly causing the stock price to increase?
Who do they buy it from? the Shareholders and/or insiders?

Kuntree asked:


I heard that the price is driven down to get other owners of the same stock to panic and sell. Then the ones driving the stock down buy it back at the lower price. Is this true?

Irony Of Poe asked:


What has traditionally happened to the stock price of the company being bought out? Does it rise? Or does the buying company purchase all the stock for very little and current stockholders lose their butts like with Bear-Stearns?

I’m asking this because I want to know what will happen to National City’s (NCC) stock if it gets bought out.

enigma84007 asked:


When buying stock what is the price you pay for the shares? Is it the current value of the shares? For example, lets say the current value for a stock is $20.00 and I buy 200 shares does that mean I get 200 shares? If so then why does the asking price tend to be higher than the current value of the stock?