Also can you tell me how a company profits from stocks???
2006-07-26 08:00:40 · 6 answers · asked by Thewall 3 in Business & Finance ➔ Investing
No, there certainly isn't any way to "know." The future is always uncertain.
But there are lots of things you can "know" to do when a certain price is hit, or at price levels such as support and resistance. All we can do is increase our odds a little, and manage our risk, and use good money management. We can increase our odds substantially by following the trend. For example, why would you own a stock, or any investment, that you know is decreasing in value and that you "know" is going to continue to decrease in value?
No amount of hoping or fear or "predicting" will change the fact that the market has a mind of its own, and will do what it's going to do, regardless of what we do. It will rise and it will fall.
2006-07-26 08:26:31 · answer #1 · answered by dredude52 6 · 1⤊ 0⤋
No. You can't know it. You have to keep guessing. Some guesses are better than others, but none work 100% of the time.
As to "how a company profits from stocks", most of the time it doesn't. Having your stock publicly traded can help you sell more of it if necessary. Also, these days sophisticated lenders use the company's stock volatility as input for pricing credit to the company.
2006-07-26 16:31:25 · answer #2 · answered by NC 7 · 0⤊ 0⤋
There is no way to know - in absolute terms - if a company's stock will rise. You can only do your best to predict based on earnings, projections, and press releases related to the company's operations.
The only way a company actually profits from from stocks is the same way you and I would profit from its stocks - it buys when it feels its stocks are undervalued and sells at a profit. The stock price has no real bearing on a company's earnings. The only time a company receives capital from stock is when it issues new shares - most companies do this only once in its "Initial Public Offering" or IPO. This is what is commonly refered to as 'going public'.
2006-07-26 15:08:17 · answer #3 · answered by CSPEAK 1 · 0⤊ 0⤋
a companies stock should be bought with the expectation that the company will do good in the future. you should not buy soley on what it did in the past. You should not get caught up and buy when the stock has jumped up. the best way to know if a company will go up is to get to know the company. get a few of them and really get interested in what they do there competitors. you will eventually get a feeling on what the company will do in the future. that is the best way to invest.
The company doesnt technically make money from stocks. when the company sells stocks that they are holding they have to have a value of what the stock is. sometimes it is as little as a dollar. any money that you pay the company in addition to that is an equity account in the company. that money in essence becomes stockholder money. it is called paid in addition to capital
2006-07-26 15:05:09 · answer #4 · answered by rayce92 2 · 0⤊ 0⤋
Stock prices rise when stocks are reverse split.
Companies make money on stocks by selling them to the public.
2006-07-26 15:04:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think they profit from having greater capital from the sale of their stocks.
I don't really know, I went to art school, I could draw you a nice flower though.
2006-07-26 15:07:46 · answer #6 · answered by Tattooed 1 · 0⤊ 0⤋