Question

Precalc dual Sports English days ago I UA GD 3 - 13 EE- Swing Hi Swing Lo Review questions. Answers should be in the form of full sentences 1. Explain the role of investors' expectations in stock price fluctuations 2. What is a bull market? 3. What is a bear market? 4. What is an ask price? 5. What is a buy price? 6. Describe volatility 7. Explain how each of the following brings value to an investor's stock: a. The company b. Communication about the company c. The company's industry d. The economy e. World Events

Answer 1

1. Stock markets varies as per market expectations, decrease in earning may cause stock to go up if the expectation is a decline and increase an earning may cause a stock to go down if the expectations is an increase.

2. Bull market is a market where prices of stocks are on increasing trend i.e. higher and where the economy is sound, encouraging buyer, its show growth and stability.

3. Bear market is a market where prices of stocks are on decreasing trend i.e. declining and economy is bad, discouraging buyer.

4. Ask price is a price what a seller will acceptaccept, it is lowest proce shareholder is willing to part with shares.

5. Buy Price is a price which is the final price a buyer is willing to give, it may be more or less with the selling price.

6. Volatility is a measure of degree of variation of prices of stocks which are trading which can be measure by the equation of Standard Deviation.

7. a. The Company - By valuation of the company prior to investment and the price investors will pay to release a return.

7. b. Communication about the company - By the goodwill of the company and the right best strategy followed by the company.

7. c. The company industry ups and downs impact stocks prices sharply with variations.

7. d. If the people invests more then the demand of shares also go more i.e. increasing and stock market goes up and vice versa.

7. e. World events like natural disasters, wars, terrorism etc has an indirect influences on up and down of prices of markets