- published: 23 Oct 2012
- views: 8344
Create your page here
-
remove the playlistShare Prices
- remove the playlistShare Prices
back to playlist
Why are there stocks at all?
Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl!
Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science.
We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! :)
We're a bunch of Information designers from munich, visit us on facebook or behance to say hi!
https://www.facebook.com/Kurzgesagt
https://www.behance.net/kurzgesagt
How the Stock Exchange works
Help us caption & translate this video!
http://amara.org/v/Dgo7/
- published: 28 Nov 2013
- views: 2163060
Visit us at www.flay.in
Stock Exchanges are an integral part of finance in everyday life. Also, the understanding of how share prices fluctuate is very important concept of finance. This video explains these so called "DIFFICULT" concepts in a very easy and simple way ! Even kids can learn these topics very easily !!
Finance is never tough ! Thats a MYTH !!
- published: 29 Oct 2012
- views: 1324
Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above.
------------------------------------------------------------------------
In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "If every share is owned 100% of the time, then what is a "sell off" and how are share prices determined? I always thought selling reduced the price, buying drove prices up - but if there is an equal number of buys and sells this can't be." Jason explains that while in some cases yes, buying will drive prices up but that's when a stock is in demand. But consider a company that has just announced a lot of bad news, prompting investors to head for the exits on the stock. While for every seller there's also a buyer, there's also a fundamental negotiation at work here. Buyers are only going to buy when they feel the price represents enough of a bargain to account for whatever risk may be involved. The buying here isn't pushing up prices, it's soaking up the inventory that's offered up for sale because the sellers want out. And that ultimately is what can cause a selloff.
Visit us on the web at http://www.fool.com, home to the world's greatest investing community!
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool
- published: 29 Jan 2014
- views: 2201
You can now get live share prices across the Hargreaves Lansdown website, including your portfolio valuation. This additional feature is FREE for all online clients - there are no additional charges and no minimum activity criteria.
- No 15 minute delay - see share prices move as soon as the market opens at 8am
- No need to refresh pages - prices update whilst you're on any page
- Up-to-the-second share prices throughout the day
- See live account valuations (most UK shares)
- published: 15 May 2014
- views: 38598
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; deals are announced and when they close. You’ll also learn a simple rule of thumb you can use to predict how a buyer’s share price might change.
http://breakingintowallstreet.com/
"Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
1:48 How the Seller’s Share Price Changes
3:55 How the Buyer’s Share Price Changes
10:16 Facebook / WhatsApp Example
12:01 Recap and Summary
Lesson Outline:
Question: “Can you please explain to me, quick and dirty, how the share prices of 2 public companies normally change when an M&A; deal takes place?
Basically, how can I tell which share price will go up and which will go down?”
Answer: It’s easier to explain this for the seller in an M&A; deal, so we’ll start there and then go into what happens to the buyer.
The Seller
The seller’s share price will almost always move closer to the offer price.
EX: The company’s share price is $7.00, you offer $10.00 / share for it – the price will almost always jump to $9.90… or $9.80… or something close to $10.00.
This is because the seller is now worth close to whatever you’re offering for it. It won’t be exactly $10.00, though, because there is a chance the deal may not close.
The Buyer
The buyer’s share price depends on how much the market thinks the combined company is worth afterward.
EX: The Buyer has 100 shares outstanding at $10 per share, for an Equity Value of $1,000.
It then offers the seller $7 per share for its 50 shares in an all-stock deal.
How does the buyer’s share price change?
It depends!
The buyer issues 35 shares to do this, since ($7 * 50) / $10 = $350 / $10 = 35 shares.
And the Combined Equity Value is therefore $1,350. There are now 135 total shares outstanding, since the buyer’s share still exist, the seller’s shares disappeared, and 35 new shares were issued.
BUT… what does the market think the Combined Company is worth?
If it thinks the combined company is worth more than $1,350, the share price will increase because the # of shares outstanding is fixed – so the share price must go up.
But if it thinks the combined company is worth LESS than $1,350, the share price will decrease because the # of shares outstanding is fixed – so the share price must go down.
So if the combined company is worth:
$1,350: The buyer’s share price stays the same.
$1,400: The buyer’s share price increases!
$1,300: The buyer’s share price decreases!
So it depends heavily on market sentiment, and the buyer’s share price could “flip flop” quite a bit over time before the transaction closes.
A good real-world example of this is the Facebook / WhatsApp deal – Facebook’s stock price rose, fell, and then rose again in between when the deal was announced and when it closed, all based on investor sentiment.
Your Homework Assignment
What happens in a 100% cash or debt deal?
We simplified it here to look at a 100% stock deal, but how do these share price dynamics change when the buyer uses cash or debt or some combination of those instead?
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.pdf
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.xlsx
- published: 24 Nov 2015
- views: 2209
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareholdings. He explores the factors that influence share prices and how changes in share prices translate into the market capitalisation of a company.
- published: 13 Apr 2016
- views: 1019
http://www.openmarkets.com.au/
OpenMarkets Online Investment
Module 1
Why share prices go up and down - Supply and Demand
This video discusses the supply and demand factors that affect share price.
Visit the OpenMarkets Australia website to learn about how Australia's newest stock broker can help you invest with low brokerage fees and our innovative new WebTrader platform.
- published: 12 Nov 2013
- views: 1015
The most valuable companies often have larger share prices, so it may be better to have fewer stock shares of a more expensive stock than many shares of a less expensive one.
- published: 02 Apr 2015
- views: 410
Lesson 10 understand the influences on share prices and the significance of share price changes
- published: 01 Nov 2015
- views: 45
Share price
A share price is the price of a single share of a number of saleable stocks of a company, derivative or other financial asset. In layman's terms, the stock price is the highest amount someone is willing to pay for the stock, or the lowest amount that it can be bought for.
Behavior of share prices
In economics and financial theory, analysts use random walk techniques to model behavior of asset prices, in particular share prices on stock markets, currency exchange rates and commodity prices. This practice has its basis in the presumption that investors act rationally and without biases, and that at any moment they estimate the value of an asset based on future expectations. Under these conditions, all existing information affects the price, which changes only when new information comes out. By definition, new information appears randomly and influences the asset price randomly.
Empirical studies have demonstrated that prices do not completely follow random walks. Low serial correlations (around 0.05) exist in the short term, and slightly stronger correlations over the longer term. Their sign and the strength depend on a variety of factors.
This page contains text from Wikipedia, the Free Encyclopedia -
http://wn.com/Share_price
This article is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License, which means that you can copy and modify it as long as the entire work (including additions) remains under this license.
This article is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License, which means that you can copy and modify it as long as the entire work (including additions) remains under this license.
- Loading...
-
1:56Why do share prices go up and down
Why do share prices go up and downWhy do share prices go up and down
Gcse history -
3:34How The Stock Exchange Works (For Dummies)
How The Stock Exchange Works (For Dummies)How The Stock Exchange Works (For Dummies)
Why are there stocks at all? Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl! Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science. We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! :) We're a bunch of Information designers from munich, visit us on facebook or behance to say hi! https://www.facebook.com/Kurzgesagt https://www.behance.net/kurzgesagt How the Stock Exchange works Help us caption & translate this video! http://amara.org/v/Dgo7/ -
13:08Stock Exchanges and share prices.wmv
Stock Exchanges and share prices.wmvStock Exchanges and share prices.wmv
Visit us at www.flay.in Stock Exchanges are an integral part of finance in everyday life. Also, the understanding of how share prices fluctuate is very important concept of finance. This video explains these so called "DIFFICULT" concepts in a very easy and simple way ! Even kids can learn these topics very easily !! Finance is never tough ! Thats a MYTH !! -
2:09How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley FoolHow Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above. ------------------------------------------------------------------------ In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "If every share is owned 100% of the time, then what is a "sell off" and how are share prices determined? I always thought selling reduced the price, buying drove prices up - but if there is an equal number of buys and sells this can't be." Jason explains that while in some cases yes, buying will drive prices up but that's when a stock is in demand. But consider a company that has just announced a lot of bad news, prompting investors to head for the exits on the stock. While for every seller there's also a buyer, there's also a fundamental negotiation at work here. Buyers are only going to buy when they feel the price represents enough of a bargain to account for whatever risk may be involved. The buying here isn't pushing up prices, it's soaking up the inventory that's offered up for sale because the sellers want out. And that ultimately is what can cause a selloff. Visit us on the web at http://www.fool.com, home to the world's greatest investing community! ------------------------------------------------------------------------ Subscribe to The Motley Fool's YouTube Channel: http://www.youtube.com/TheMotleyFool Or, follow our Google+ page: https://plus.google.com/+MotleyFool/posts Inside The Motley Fool: Check out our Culture Blog! http://culture.fool.com Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool -
1:14HL FREE Live Share Prices
HL FREE Live Share PricesHL FREE Live Share Prices
You can now get live share prices across the Hargreaves Lansdown website, including your portfolio valuation. This additional feature is FREE for all online clients - there are no additional charges and no minimum activity criteria. - No 15 minute delay - see share prices move as soon as the market opens at 8am - No need to refresh pages - prices update whilst you're on any page - Up-to-the-second share prices throughout the day - See live account valuations (most UK shares) -
14:02Share Price Dynamics in M&A; Deals
Share Price Dynamics in M&A; DealsShare Price Dynamics in M&A; Deals
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; deals are announced and when they close. You’ll also learn a simple rule of thumb you can use to predict how a buyer’s share price might change. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:48 How the Seller’s Share Price Changes 3:55 How the Buyer’s Share Price Changes 10:16 Facebook / WhatsApp Example 12:01 Recap and Summary Lesson Outline: Question: “Can you please explain to me, quick and dirty, how the share prices of 2 public companies normally change when an M&A; deal takes place? Basically, how can I tell which share price will go up and which will go down?” Answer: It’s easier to explain this for the seller in an M&A; deal, so we’ll start there and then go into what happens to the buyer. The Seller The seller’s share price will almost always move closer to the offer price. EX: The company’s share price is $7.00, you offer $10.00 / share for it – the price will almost always jump to $9.90… or $9.80… or something close to $10.00. This is because the seller is now worth close to whatever you’re offering for it. It won’t be exactly $10.00, though, because there is a chance the deal may not close. The Buyer The buyer’s share price depends on how much the market thinks the combined company is worth afterward. EX: The Buyer has 100 shares outstanding at $10 per share, for an Equity Value of $1,000. It then offers the seller $7 per share for its 50 shares in an all-stock deal. How does the buyer’s share price change? It depends! The buyer issues 35 shares to do this, since ($7 * 50) / $10 = $350 / $10 = 35 shares. And the Combined Equity Value is therefore $1,350. There are now 135 total shares outstanding, since the buyer’s share still exist, the seller’s shares disappeared, and 35 new shares were issued. BUT… what does the market think the Combined Company is worth? If it thinks the combined company is worth more than $1,350, the share price will increase because the # of shares outstanding is fixed – so the share price must go up. But if it thinks the combined company is worth LESS than $1,350, the share price will decrease because the # of shares outstanding is fixed – so the share price must go down. So if the combined company is worth: $1,350: The buyer’s share price stays the same. $1,400: The buyer’s share price increases! $1,300: The buyer’s share price decreases! So it depends heavily on market sentiment, and the buyer’s share price could “flip flop” quite a bit over time before the transaction closes. A good real-world example of this is the Facebook / WhatsApp deal – Facebook’s stock price rose, fell, and then rose again in between when the deal was announced and when it closed, all based on investor sentiment. Your Homework Assignment What happens in a 100% cash or debt deal? We simplified it here to look at a 100% stock deal, but how do these share price dynamics change when the buyer uses cash or debt or some combination of those instead? RESOURCES: http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.xlsx -
15:39Shares, Share Prices and Market Capitalisation
Shares, Share Prices and Market CapitalisationShares, Share Prices and Market Capitalisation
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareholdings. He explores the factors that influence share prices and how changes in share prices translate into the market capitalisation of a company. -
1:19Why share prices go up and down - Part 1 | Video 12
Why share prices go up and down - Part 1 | Video 12Why share prices go up and down - Part 1 | Video 12
http://www.openmarkets.com.au/ OpenMarkets Online Investment Module 1 Why share prices go up and down - Supply and Demand This video discusses the supply and demand factors that affect share price. Visit the OpenMarkets Australia website to learn about how Australia's newest stock broker can help you invest with low brokerage fees and our innovative new WebTrader platform. -
1:44Understanding Share Prices
Understanding Share PricesUnderstanding Share Prices
The most valuable companies often have larger share prices, so it may be better to have fewer stock shares of a more expensive stock than many shares of a less expensive one. -
6:42Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changesLesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
Lesson 10 understand the influences on share prices and the significance of share price changes
-
Why do share prices go up and down
Gcse history -
How The Stock Exchange Works (For Dummies)
Why are there stocks at all? Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl! Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science. We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! :) We're a bunch of Information designers from munich, visit us on facebook or behance to say hi! https://www.facebook.com/Kurzgesagt https:/... -
Stock Exchanges and share prices.wmv
Visit us at www.flay.in Stock Exchanges are an integral part of finance in everyday life. Also, the understanding of how share prices fluctuate is very important concept of finance. This video explains these so called "DIFFICULT" concepts in a very easy and simple way ! Even kids can learn these topics very easily !! Finance is never tough ! Thats a MYTH !! -
How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above. ------------------------------------------------------------------------ In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "If every share is owned 100% of the time, then what is a "sell off" and how are share prices determined? I always thought selling reduced the price, buying drove prices up - but if there is an equal number of buys and sells this can't be." Jason explains that while in some cases yes, buying will dr... -
HL FREE Live Share Prices
You can now get live share prices across the Hargreaves Lansdown website, including your portfolio valuation. This additional feature is FREE for all online clients - there are no additional charges and no minimum activity criteria. - No 15 minute delay - see share prices move as soon as the market opens at 8am - No need to refresh pages - prices update whilst you're on any page - Up-to-the-second share prices throughout the day - See live account valuations (most UK shares) -
Share Price Dynamics in M&A; Deals
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; deals are announced and when they close. You’ll also learn a simple rule of thumb you can use to predict how a buyer’s share price might change. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:48 How the Seller’s Share Price Changes 3:55 How the Buyer’s Share Price Changes 10:16 Facebook / WhatsApp Example 12:01 Recap and Summary Lesson Outline: Question: “Can you please explain to me, quick and dirty, how the share prices of 2 public companies normally change when an M&A; deal takes place? Basically, how can I tell which share price will go up and which will go down?” Answer: It’s easier to explain thi... -
Shares, Share Prices and Market Capitalisation
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareholdings. He explores the factors that influence share prices and how changes in share prices translate into the market capitalisation of a company. -
Why share prices go up and down - Part 1 | Video 12
http://www.openmarkets.com.au/ OpenMarkets Online Investment Module 1 Why share prices go up and down - Supply and Demand This video discusses the supply and demand factors that affect share price. Visit the OpenMarkets Australia website to learn about how Australia's newest stock broker can help you invest with low brokerage fees and our innovative new WebTrader platform. -
Understanding Share Prices
The most valuable companies often have larger share prices, so it may be better to have fewer stock shares of a more expensive stock than many shares of a less expensive one. -
Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
Lesson 10 understand the influences on share prices and the significance of share price changes
Why do share prices go up and down
- Order: Reorder
- Duration: 1:56
- Updated: 23 Oct 2012
- views: 8344
Gcse history
Gcse history
wn.com/Why Do Share Prices Go Up And Down
How The Stock Exchange Works (For Dummies)
- Order: Reorder
- Duration: 3:34
- Updated: 28 Nov 2013
- views: 2163060
Why are there stocks at all?
Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have...
Why are there stocks at all?
Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl!
Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science.
We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! :)
We're a bunch of Information designers from munich, visit us on facebook or behance to say hi!
https://www.facebook.com/Kurzgesagt
https://www.behance.net/kurzgesagt
How the Stock Exchange works
Help us caption & translate this video!
http://amara.org/v/Dgo7/
wn.com/How The Stock Exchange Works (For Dummies)
Why are there stocks at all?
Everyday in the news we hear about the stock exchange, stocks and money moving around the globe. Still, a lot of people don't have an idea why we have stock markets at all, because the topic is usually very dry. We made a short video about the basics of the stock exchanges. With robots. Robots are kewl!
Short videos, explaining things. For example Evolution, the Universe, the Stock Market or controversial topics like Fracking. Because we love science.
We would love to interact more with you, our viewers to figure out what topics you want to see. If you have a suggestion for future videos or feedback, drop us a line! :)
We're a bunch of Information designers from munich, visit us on facebook or behance to say hi!
https://www.facebook.com/Kurzgesagt
https://www.behance.net/kurzgesagt
How the Stock Exchange works
Help us caption & translate this video!
http://amara.org/v/Dgo7/
- published: 28 Nov 2013
- views: 2163060
Stock Exchanges and share prices.wmv
- Order: Reorder
- Duration: 13:08
- Updated: 29 Oct 2012
- views: 1324
Visit us at www.flay.in
Stock Exchanges are an integral part of finance in everyday life. Also, the understanding of how share prices fluctuate is very importan...
Visit us at www.flay.in
Stock Exchanges are an integral part of finance in everyday life. Also, the understanding of how share prices fluctuate is very important concept of finance. This video explains these so called "DIFFICULT" concepts in a very easy and simple way ! Even kids can learn these topics very easily !!
Finance is never tough ! Thats a MYTH !!
wn.com/Stock Exchanges And Share Prices.Wmv
Visit us at www.flay.in
Stock Exchanges are an integral part of finance in everyday life. Also, the understanding of how share prices fluctuate is very important concept of finance. This video explains these so called "DIFFICULT" concepts in a very easy and simple way ! Even kids can learn these topics very easily !!
Finance is never tough ! Thats a MYTH !!
- published: 29 Oct 2012
- views: 1324
How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
- Order: Reorder
- Duration: 2:09
- Updated: 29 Jan 2014
- views: 2201
Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was ...
Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above.
------------------------------------------------------------------------
In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "If every share is owned 100% of the time, then what is a "sell off" and how are share prices determined? I always thought selling reduced the price, buying drove prices up - but if there is an equal number of buys and sells this can't be." Jason explains that while in some cases yes, buying will drive prices up but that's when a stock is in demand. But consider a company that has just announced a lot of bad news, prompting investors to head for the exits on the stock. While for every seller there's also a buyer, there's also a fundamental negotiation at work here. Buyers are only going to buy when they feel the price represents enough of a bargain to account for whatever risk may be involved. The buying here isn't pushing up prices, it's soaking up the inventory that's offered up for sale because the sellers want out. And that ultimately is what can cause a selloff.
Visit us on the web at http://www.fool.com, home to the world's greatest investing community!
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool
wn.com/How Are Share Prices Determined By Buying And Selling | Ask A Fool | The Motley Fool
Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above.
------------------------------------------------------------------------
In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "If every share is owned 100% of the time, then what is a "sell off" and how are share prices determined? I always thought selling reduced the price, buying drove prices up - but if there is an equal number of buys and sells this can't be." Jason explains that while in some cases yes, buying will drive prices up but that's when a stock is in demand. But consider a company that has just announced a lot of bad news, prompting investors to head for the exits on the stock. While for every seller there's also a buyer, there's also a fundamental negotiation at work here. Buyers are only going to buy when they feel the price represents enough of a bargain to account for whatever risk may be involved. The buying here isn't pushing up prices, it's soaking up the inventory that's offered up for sale because the sellers want out. And that ultimately is what can cause a selloff.
Visit us on the web at http://www.fool.com, home to the world's greatest investing community!
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool
- published: 29 Jan 2014
- views: 2201
HL FREE Live Share Prices
- Order: Reorder
- Duration: 1:14
- Updated: 15 May 2014
- views: 38598
You can now get live share prices across the Hargreaves Lansdown website, including your portfolio valuation. This additional feature is FREE for all online cli...
You can now get live share prices across the Hargreaves Lansdown website, including your portfolio valuation. This additional feature is FREE for all online clients - there are no additional charges and no minimum activity criteria.
- No 15 minute delay - see share prices move as soon as the market opens at 8am
- No need to refresh pages - prices update whilst you're on any page
- Up-to-the-second share prices throughout the day
- See live account valuations (most UK shares)
wn.com/Hl Free Live Share Prices
You can now get live share prices across the Hargreaves Lansdown website, including your portfolio valuation. This additional feature is FREE for all online clients - there are no additional charges and no minimum activity criteria.
- No 15 minute delay - see share prices move as soon as the market opens at 8am
- No need to refresh pages - prices update whilst you're on any page
- Up-to-the-second share prices throughout the day
- See live account valuations (most UK shares)
- published: 15 May 2014
- views: 38598
Share Price Dynamics in M&A; Deals
- Order: Reorder
- Duration: 14:02
- Updated: 24 Nov 2015
- views: 2209
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; deals are announced and when they close. You’ll also learn a simple rul...
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; deals are announced and when they close. You’ll also learn a simple rule of thumb you can use to predict how a buyer’s share price might change.
http://breakingintowallstreet.com/
"Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
1:48 How the Seller’s Share Price Changes
3:55 How the Buyer’s Share Price Changes
10:16 Facebook / WhatsApp Example
12:01 Recap and Summary
Lesson Outline:
Question: “Can you please explain to me, quick and dirty, how the share prices of 2 public companies normally change when an M&A; deal takes place?
Basically, how can I tell which share price will go up and which will go down?”
Answer: It’s easier to explain this for the seller in an M&A; deal, so we’ll start there and then go into what happens to the buyer.
The Seller
The seller’s share price will almost always move closer to the offer price.
EX: The company’s share price is $7.00, you offer $10.00 / share for it – the price will almost always jump to $9.90… or $9.80… or something close to $10.00.
This is because the seller is now worth close to whatever you’re offering for it. It won’t be exactly $10.00, though, because there is a chance the deal may not close.
The Buyer
The buyer’s share price depends on how much the market thinks the combined company is worth afterward.
EX: The Buyer has 100 shares outstanding at $10 per share, for an Equity Value of $1,000.
It then offers the seller $7 per share for its 50 shares in an all-stock deal.
How does the buyer’s share price change?
It depends!
The buyer issues 35 shares to do this, since ($7 * 50) / $10 = $350 / $10 = 35 shares.
And the Combined Equity Value is therefore $1,350. There are now 135 total shares outstanding, since the buyer’s share still exist, the seller’s shares disappeared, and 35 new shares were issued.
BUT… what does the market think the Combined Company is worth?
If it thinks the combined company is worth more than $1,350, the share price will increase because the # of shares outstanding is fixed – so the share price must go up.
But if it thinks the combined company is worth LESS than $1,350, the share price will decrease because the # of shares outstanding is fixed – so the share price must go down.
So if the combined company is worth:
$1,350: The buyer’s share price stays the same.
$1,400: The buyer’s share price increases!
$1,300: The buyer’s share price decreases!
So it depends heavily on market sentiment, and the buyer’s share price could “flip flop” quite a bit over time before the transaction closes.
A good real-world example of this is the Facebook / WhatsApp deal – Facebook’s stock price rose, fell, and then rose again in between when the deal was announced and when it closed, all based on investor sentiment.
Your Homework Assignment
What happens in a 100% cash or debt deal?
We simplified it here to look at a 100% stock deal, but how do these share price dynamics change when the buyer uses cash or debt or some combination of those instead?
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.pdf
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.xlsx
wn.com/Share Price Dynamics In M A Deals
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; deals are announced and when they close. You’ll also learn a simple rule of thumb you can use to predict how a buyer’s share price might change.
http://breakingintowallstreet.com/
"Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Table of Contents:
1:48 How the Seller’s Share Price Changes
3:55 How the Buyer’s Share Price Changes
10:16 Facebook / WhatsApp Example
12:01 Recap and Summary
Lesson Outline:
Question: “Can you please explain to me, quick and dirty, how the share prices of 2 public companies normally change when an M&A; deal takes place?
Basically, how can I tell which share price will go up and which will go down?”
Answer: It’s easier to explain this for the seller in an M&A; deal, so we’ll start there and then go into what happens to the buyer.
The Seller
The seller’s share price will almost always move closer to the offer price.
EX: The company’s share price is $7.00, you offer $10.00 / share for it – the price will almost always jump to $9.90… or $9.80… or something close to $10.00.
This is because the seller is now worth close to whatever you’re offering for it. It won’t be exactly $10.00, though, because there is a chance the deal may not close.
The Buyer
The buyer’s share price depends on how much the market thinks the combined company is worth afterward.
EX: The Buyer has 100 shares outstanding at $10 per share, for an Equity Value of $1,000.
It then offers the seller $7 per share for its 50 shares in an all-stock deal.
How does the buyer’s share price change?
It depends!
The buyer issues 35 shares to do this, since ($7 * 50) / $10 = $350 / $10 = 35 shares.
And the Combined Equity Value is therefore $1,350. There are now 135 total shares outstanding, since the buyer’s share still exist, the seller’s shares disappeared, and 35 new shares were issued.
BUT… what does the market think the Combined Company is worth?
If it thinks the combined company is worth more than $1,350, the share price will increase because the # of shares outstanding is fixed – so the share price must go up.
But if it thinks the combined company is worth LESS than $1,350, the share price will decrease because the # of shares outstanding is fixed – so the share price must go down.
So if the combined company is worth:
$1,350: The buyer’s share price stays the same.
$1,400: The buyer’s share price increases!
$1,300: The buyer’s share price decreases!
So it depends heavily on market sentiment, and the buyer’s share price could “flip flop” quite a bit over time before the transaction closes.
A good real-world example of this is the Facebook / WhatsApp deal – Facebook’s stock price rose, fell, and then rose again in between when the deal was announced and when it closed, all based on investor sentiment.
Your Homework Assignment
What happens in a 100% cash or debt deal?
We simplified it here to look at a 100% stock deal, but how do these share price dynamics change when the buyer uses cash or debt or some combination of those instead?
RESOURCES:
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.pdf
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/108-09-MA-Share-Price-Dynamics.xlsx
- published: 24 Nov 2015
- views: 2209
Shares, Share Prices and Market Capitalisation
- Order: Reorder
- Duration: 15:39
- Updated: 13 Apr 2016
- views: 1019
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareholdings. He explores the factors that influence share prices and how c...
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareholdings. He explores the factors that influence share prices and how changes in share prices translate into the market capitalisation of a company.
wn.com/Shares, Share Prices And Market Capitalisation
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareholdings. He explores the factors that influence share prices and how changes in share prices translate into the market capitalisation of a company.
- published: 13 Apr 2016
- views: 1019
Why share prices go up and down - Part 1 | Video 12
- Order: Reorder
- Duration: 1:19
- Updated: 12 Nov 2013
- views: 1015
http://www.openmarkets.com.au/
OpenMarkets Online Investment
Module 1
Why share prices go up and down - Supply and Demand
This video discusses the supply and ...
http://www.openmarkets.com.au/
OpenMarkets Online Investment
Module 1
Why share prices go up and down - Supply and Demand
This video discusses the supply and demand factors that affect share price.
Visit the OpenMarkets Australia website to learn about how Australia's newest stock broker can help you invest with low brokerage fees and our innovative new WebTrader platform.
wn.com/Why Share Prices Go Up And Down Part 1 | Video 12
http://www.openmarkets.com.au/
OpenMarkets Online Investment
Module 1
Why share prices go up and down - Supply and Demand
This video discusses the supply and demand factors that affect share price.
Visit the OpenMarkets Australia website to learn about how Australia's newest stock broker can help you invest with low brokerage fees and our innovative new WebTrader platform.
- published: 12 Nov 2013
- views: 1015
Understanding Share Prices
- Order: Reorder
- Duration: 1:44
- Updated: 02 Apr 2015
- views: 410
The most valuable companies often have larger share prices, so it may be better to have fewer stock shares of a more expensive stock than many shares of a less ...
The most valuable companies often have larger share prices, so it may be better to have fewer stock shares of a more expensive stock than many shares of a less expensive one.
wn.com/Understanding Share Prices
The most valuable companies often have larger share prices, so it may be better to have fewer stock shares of a more expensive stock than many shares of a less expensive one.
- published: 02 Apr 2015
- views: 410
Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
- Order: Reorder
- Duration: 6:42
- Updated: 01 Nov 2015
- views: 45
Lesson 10 understand the influences on share prices and the significance of share price changes
Lesson 10 understand the influences on share prices and the significance of share price changes
wn.com/Lesson 10 Understand The Influences On Share Prices And The Significance Of Share Price Changes
Lesson 10 understand the influences on share prices and the significance of share price changes
- published: 01 Nov 2015
- views: 45
close fullscreen
- Playlist
- Chat
close fullscreen
- Playlist
- Chat
1:56
Why do share prices go up and down
Gcse history
published: 23 Oct 2012
Why do share prices go up and down
Why do share prices go up and down
- Report rights infringement
- published: 23 Oct 2012
- views: 8344
3:34
How The Stock Exchange Works (For Dummies)
Why are there stocks at all?
Everyday in the news we hear about the stock exchange, stock...
published: 28 Nov 2013
How The Stock Exchange Works (For Dummies)
How The Stock Exchange Works (For Dummies)
- Report rights infringement
- published: 28 Nov 2013
- views: 2163060
13:08
Stock Exchanges and share prices.wmv
Visit us at www.flay.in
Stock Exchanges are an integral part of finance in everyday life. ...
published: 29 Oct 2012
Stock Exchanges and share prices.wmv
Stock Exchanges and share prices.wmv
- Report rights infringement
- published: 29 Oct 2012
- views: 1324
2:09
How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
Investing made simple: The Motley Fool's essential guide to investing is now available to ...
published: 29 Jan 2014
How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
How Are Share Prices Determined By Buying and Selling? | Ask A Fool | The Motley Fool
- Report rights infringement
- published: 29 Jan 2014
- views: 2201
1:14
HL FREE Live Share Prices
You can now get live share prices across the Hargreaves Lansdown website, including your p...
published: 15 May 2014
HL FREE Live Share Prices
HL FREE Live Share Prices
- Report rights infringement
- published: 15 May 2014
- views: 38598
14:02
Share Price Dynamics in M&A; Deals
In this tutorial, you’ll learn how the buyer’s and seller’s share prices change when M&A; d...
published: 24 Nov 2015
Share Price Dynamics in M&A; Deals
Share Price Dynamics in M&A; Deals
- Report rights infringement
- published: 24 Nov 2015
- views: 2209
15:39
Shares, Share Prices and Market Capitalisation
In this revision video, Jim Riley from tutor2u introduces the concept of shares and shareh...
published: 13 Apr 2016
Shares, Share Prices and Market Capitalisation
Shares, Share Prices and Market Capitalisation
- Report rights infringement
- published: 13 Apr 2016
- views: 1019
1:19
Why share prices go up and down - Part 1 | Video 12
http://www.openmarkets.com.au/
OpenMarkets Online Investment
Module 1
Why share prices go...
published: 12 Nov 2013
Why share prices go up and down - Part 1 | Video 12
Why share prices go up and down - Part 1 | Video 12
- Report rights infringement
- published: 12 Nov 2013
- views: 1015
1:44
Understanding Share Prices
The most valuable companies often have larger share prices, so it may be better to have fe...
published: 02 Apr 2015
Understanding Share Prices
Understanding Share Prices
- Report rights infringement
- published: 02 Apr 2015
- views: 410
6:42
Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
Lesson 10 understand the influences on share prices and the significance of share price ch...
published: 01 Nov 2015
Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
Lesson 10 Understand the INFLUENCES on share prices and the significance of share price changes
- Report rights infringement
- published: 01 Nov 2015
- views: 45
Why do share prices go up and down...
How The Stock Exchange Works (For Dummies)...
Stock Exchanges and share prices.wmv...
How Are Share Prices Determined By Buying and Sell...
HL FREE Live Share Prices...
Share Price Dynamics in M&A; Deals...
Shares, Share Prices and Market Capitalisation...
Why share prices go up and down - Part 1 | Video 1...
Understanding Share Prices...
Lesson 10 Understand the INFLUENCES on share price...
photo: Public Domain / Image by NASA, modifications by Seddon
[VIDEO]: Stunning 'Hidden Morse Code Message' Found On Martian Surface
Edit WorldNews.com 12 Jul 2016
In an out-of-this-world discovery, NASA has released fascinating new images of Mars which reveal bizarre natural sand patterns on the Red Planet that unbelievably resemble Morse code, Huffington Post Tech reported Tuesday.NASA explained in a post the Morse-code figures are sand dunes which have been “influenced by local topography.”....
photo: AP / Mic Smith, FILE
16-Year Veteran Firefighter Unemployed After Black Lives Matter Racist Facebook Posts
Edit WorldNews.com 12 Jul 2016
A 16-year veteran of a South Carolina fire department is unemployed after taking to Facebook and threatening to run over Black Lives Matter activists who were protesting raising the Confederate flag at the state house by a secessionist group, the Charlotte Observer reported Tuesday.Captain Jimmy Morris was fired from his job in Columbia after his superiors were alerted about two Facebook posts he wrote Sunday night....
photo: AP / Tony Gutierrez
Summer Of Chaos In U.S. Mirrors The End Of Power
Edit WorldNews.com 12 Jul 2016
Given the imperial architecture of many government entities and institutions are becoming more corrupt and less powerful, including an enormous disconnect between how people on the street perceive, experiment with and shape the various realities of power, power is coming under attack and quickly eroding ... Morals, too, will drastically be changed, as is already happening ... Despite Barriers No One Will Be Immune Don’t be mistaken, however....
photo: Public Domain / NASA
Up, Up and Away! Child Nearly Abducted By Eagle At Australian Wildlife Show
Edit WorldNews.com 12 Jul 2016
A terrified child was nearly abducted by a wedge-tailed eagle at a popular wildlife show in central Australia, media reports said.On July 6, a crowd of stunned onlookers watched the enormous bird latch its talons onto the screaming boy's head during a show at Alice Springs Desert Park, BBC News reported. The boy – believed to be between six and eight years old – escaped with a "superficial" gash to his face....
photo: AP/Peter Dejong
Philippines wins South China Sea case against China
Edit The Irish Times 12 Jul 2016
Judges at an arbitration tribunal in The Hague on Tuesday rejected China’s claims to economic rights across large swathes of the South China Sea in a ruling that will be claimed as a victory by the Philippines ... ....
« back to news headlines
Director/PDMR Shareholding (Scapa Group plc)
Edit Public Technologies 13 Jul 2016
Ordinary shares of 5p each ... Grant of share option ... Price(s) and volume(s). 152,613 Ordinary Shares. Exercise price 0p ... - Price ... Ordinary shares of 5p each ... Grant of share option ... Price(s) and volume(s). 92,803 Ordinary Shares. Exercise price 0p ... - Price ... Ordinary shares of 5p each ... Grant of share option ... Price(s) and volume(s). 49,858 Ordinary Shares. Exercise price 0p ... - Price ... Ordinary shares of 5p each ... Grant of share option ... Price(s) and volume(s)....
Change in substantial holding (Flinders Mines Limited)
Edit Public Technologies 13 Jul 2016
As none of these entities are entitled to be registered as holder of the shares, their ability to vote and dispose of these shares is qualified accordingly ... shares on issue in Flinders. shares on issue in ... The Offer Price under the Takeover Offer. 3,693,894 ordinary shares ... $0.0250 per share. 3,310,861 ordinary shares ... The Offer Price under the Takeover Offer. 292,242 ordinary shares ... $0.0250 per share. 406,415 ordinary shares....
Appendix 3E (Karoon Gas Australia Limited)
Edit Public Technologies 13 Jul 2016
Karoon Gas Australia Limited) Microsoft Word - Appendix 3E Daily Share Buy-Back Notice 13072016.doc. Appendix 3E Daily share buy‐back notice ... Daily share buy‐back notice (except minimum holding buy‐back and selective buy‐back) ... Total of all shares/units bought back, or in relation to which acceptances have been received, before, and on, previous day ... 4 Total consideration paid or payable for the shares/units ... Daily share buy-back notice....
Appendix 3B (Rubicor Group Limited)
Edit Public Technologies 13 Jul 2016
Exercise of options 10,379 options - Series Six Options (shares were transferred to the holder; no issue or on-market acquisition of shares) ... if options, exercise price and expiry date; if partly paid. +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) ... Issue price or consideration ... 29 June 2016 (the date when shares were transferred to the holder)....
Australia shares set to gain for a fifth day, NZ near record
Edit Reuters 13 Jul 2016
SYDNEY, July 13 (Reuters) - Australian shares will likely climb for a fifth straight day on Wednesday, joining a global equities rally, helped by easing political uncertainty in Britain and at home. Resources shares should be underpinned by a surge in oil prices. Local share price index futures added 0.6 percent to 5,343 points, a 10.2-point discount to the underlying S&P;/ASX 200 index ... New Zealand's benchmark S&P;/NZ ....
Pen:Chant feat. Harry Baker, Julie E Gordon and Norris & Parker tickets
Edit Skiddle 13 Jul 2016
Type of Ticket Price QuantityQty ... You're doing alright and can pay the standard ticket price ... Total Price ... Fresh from international touring, spoken word megastar and World Poetry Slam Champion Harry Baker will be share some of the words that have earned him ‘Best Spoken Word show’ of the Edinburgh Fringe Festival 2015, and attracted millions of online views for his TED talk ... Entry Prices ... Entry price (public)....
Trilogy International announces successful completion of Share Purchase Plan (Trilogy International Limited)
Edit Public Technologies 13 Jul 2016
New Zealand, 11 July 2016 - Trilogy International Limited (NZX.TIL) (Trilogy International, the Company) today announced the successful completion of its Share Purchase Plan (SPP) which closed fully subscribed on Friday 8 July 2016 at 5.00 pm ... The subscription price for the SPP was the same as the price paid by investors under the capital raising, being $3.70 per share....
Latin Jam Sessions
Edit Skiddle 13 Jul 2016
The Cuban Embassy (Bulls Head) in Birmingham. Tuesday 19th July 2016 ... 18 ... Share the stage with latin and local musicians and performers ... Share the stage with latin and local musicians and performers ... Entry Prices ... Entry price (public) ... ....
Jessarae
Edit Skiddle 13 Jul 2016
Garage rock singer-songwriter from California who has shared stages with artists including Plain ... Entry Prices. Entry price (public).....
Alliance Trust PLC : Net Asset Value(s) (Alliance Trust plc)
Edit Public Technologies 13 Jul 2016
(Source. Alliance Trust plc). ALLIANCE TRUST PLC ... The Company's NAV per ordinary share, valued on a bid price basis with Debt at Par, was. - excluding income, 612.0p ... The Company's NAV per ordinary share, valued on a bid price basis with Debt at Fair Value, was....
Even Apple Feels the Pinch From Declining Laptop Sales
Edit The Street 13 Jul 2016
The company's market share fell to 7.1% from 7.4% in second-quarter 2015, according to IDC, while Gartner estimated Apple's market share remained unchanged at 7.1% even as its global shipments fell by 4.9% year over year ... "The price issue has impacted the EMEA and Latin America regions for the past year....
Net Asset Value(s) (link is external) (Troy Income & Growth Trust plc)
Edit Public Technologies 13 Jul 2016
In particular, financial assets have been valued on a fair value basis using bid price, or, if more appropriate, a last trade basis. 74.19 pence per share (excluding income). 74.46 pence per share (including ......
- 1
- 2
- 3
- 4
- 5
- Next page »
