2007-11-25 04:08:21 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
The amount a share cost, a company issues shares to gain money when it goes public then the shares are resold on the market depending what people think they are worth. They decide this on what they company earns or might earn and bid against other buyers and sellers.
2007-11-25 04:15:06 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
When a company goes in to public ownership it issues shares to whoever will buy them. Each share in the company may only be a few pounds or dollars but the company can issue millions of them to raise money to continue in business. Say the shares are one dollar each and the company issues ten million shares, if you buy ten shares, for ten dolars, you will own one millionth of the company. If the company issues too many shares, it will dilute the value of those shares as the total value of all the shares, the 'market capitalisation' of the company must reflect the true value of the company if it were to be sold. If the company is in difficulties the value will fall and those people who have bought shares may find that they are worth less than when they bought them If the company is doing well, the shares will normally rise and the investors (shareholders) will see a rise in the value of their stake in the company. Hope that helps.
2007-11-25 04:28:25 · answer #2 · answered by Christina K 6 · 0⤊ 0⤋
share price is the price at which a particular stock/share trades in the stock exchange.
2007-11-25 04:15:48 · answer #3 · answered by Shashank S B 2 · 0⤊ 0⤋