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Say its shares are trading at $100 bucks a piece and it wants to bring them down to $50 without issuing any further shares, how will they do this?

And how would it do the opposite and raise the share price?

2007-05-03 02:47:37 · 3 answers · asked by tru_story 4 in Business & Finance Investing

3 answers

To increase the share price the company can do the following...
Increase sales
Increase earnings
Provide positive guidance for the future
Come up with innovative products
Cut costs
Buy back shares
Have a good management team

They can do the opposite to decrease their share price. These are the most important things that institutional and private investors are looking for.
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2007-05-03 02:56:50 · answer #1 · answered by SWH 6 · 0 0

A 2 for 1 stock split would lower the share price from $100 to $50. No NEW shares will be issued. If you owned 1 $100 share, the split would leave you with 2 $50 shares.

Share price is not determined by a company, but rather the open market based on supply and demand. A companies number one goal is to maximize shareholder wealth so it would never want to do anything intentionally to lower the VALUE of the stock.

2007-05-03 16:05:30 · answer #2 · answered by Jeff W 2 · 0 0

More ways they can affect the share price are to buy back shares and issue more shares.

When they buy back, that increases the amount each share represents of ownership. Stock price increases.

When they issue more shares, it dilutes, decreases the amount of ownership each share represents. Stock price decreases.

.

2007-05-03 10:17:38 · answer #3 · answered by Robert L 7 · 0 0

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