Determinants of stock price fluctuation

Financial position of the company causes price fluctuation of shares The financial position of the company also plays a crucial role in the determination of share prices.

What Drives Stock Prices? Identifying the Determinants of Stock Price Movements

Stock Price fluctuation implies that share prices change because of supply and demand. On the other hand, if there are many shares to sell and are not interested in buying, the price will quickly drop.

The recent financial crisis has made the Nigerian capital market illiquid, which caused the trend the decline in the market. Ologunde said that the market for both new issues primary market and secondary market embrace.

Ologunde said that the market for both new issues primary market and secondary market embrace.

Determinants of Stock Price Fluctuation in Nigerian Quoted Firms

Before a decade after independence, the country was largely agrarian and various regional governments and largely achieved food security. Maku and Atanda argued that these changes often result in the size and movement of share prices, the market index and market liquidity.

It is only the financial position that actually determines the ability of the company to pay dividend. First, it is a function of perceived risk. Past and present scholars have estimated that the investment that promotes economic growth and development requires long-term funding, much longer than the period during which most investors are willing to commit their funds.

Determinants of Stock Price Fluctuation in Nigerian Quoted Firms

The results suggest that earnings per share, book value per share and dividend cover are used as factors in determining stock prices. Remember, its feelings, attitudes and expectations of investors that affect ultimately the stock price.

Experts and financial analysts will find the study helpful in their financial and advisory services to failing and distressed companies. Get a free 10 week email series that will teach you how to start investing.

Forces that move stock prices

On the other hand, a stock sometimes behaves the opposite way in a trend and does what is called reverting to the mean. Liquidity is an important and sometimes under-appreciated factor. Stock prices can rise and fall for a countless of reasons.

This implies that it should be considered as an open system and in other words, the ratings for both indoor and outdoor environment should allow constant repositioning of accounting information. Usually the cost of an offer is dictated by supply and request.

The data were drawn from the financial statements of companies listed on the Nigerian Stock Exchange. We mentioned inflation as an input into the valuation multiple, but inflation is a huge driver from a technical perspective as well.the stock price increase in the context of a simple discounted-cash-flow model, and present some evidence from the SCF and other sources on changes in stock-market participation patterns.

DETERMINANTS OF STOCK PRICE FLUCTUATION IN NEPAL By GEETA SHRESTHA Shanker Dev Campus T.U. Regd. No. Campus Roll No.: / A Thesis Submitted to: Office of the Dean Faculty of Management Tribhuvan University In partial fulfillment of the requirement for the Degree of Master’s in Business Studies (M.B.S.

In this paper, we show that the data have difficulty distinguishing a stock price decomposition in which expectations of future real dividend growth is a primary determinant of stock price. Cochrane () and Timmerman () have concluded that fluctuation in stock prices can be attributed to change in dividend growth rates and earnings growth rates associated with stock.

group 29 determinants of stock price fluctuations: evidence from singapore by choi jun hui chua pui yi lee siew chyn lim bee gnoh wong yee mun.

Top 10 reason for fluctuation in the Price of Shares

As per the data of /07 SOB annual report, there are 1 35 companies that are listed with Nepal stock Exchange (NEAPS) consisting of 15 from banks. 6 from development bank including agriculture development bank and Nepal industrial development corporation and 53 finance companies, 4 hotel operating in the financial market.

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Determinants of stock price fluctuation
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