Control the secondary market

Assignment Help Finance Basics
Reference no: EM133119388

Although it might seem that companies cannot control the secondary market, they still monitor their stock price. A strong stock price sends a signal to potential investors that the company is doing all the right things.

Strategically timed press releases can benefit the stock price. Typically, companies announce good news at the open of the market. This provides plenty of time for investors' knee jerk reaction to positive news. Bad news is always released after the market closes with the hope that investors will have time to fully digest the news overnight and not panic.

Everyone,

Should companies only be allowed to release their news at a certain time? Why or why not?

Reference no: EM133119388

Questions Cloud

Crime control model focuses on having efficient system : The crime control model focuses on having an efficient system, with the most important function being to suppress and control crime to ensure that society
Investment analyst in a publicly listed social media : After graduating from JCU, you work as an investment analyst in a publicly listed social media company in Singapore. The company is seeking for growth opportuni
Weighted average cost of capital : You believe that weighted average cost of capital (WACC) is the best measure for the cost of financing for an investment project. Write down WACC equation and t
What are the four methods : What are the four methods in which a corporate bond can be repaid (in order)?
Control the secondary market : Although it might seem that companies cannot control the secondary market, they still monitor their stock price. A strong stock price sends a signal to potentia
Crime control model focuses on ends of justice system : Herbert Packer's The Crime Control Model focuses on the "ends" of the justice system being the convictions of the accused and high term sentencing
Wall of silence : Describes how line officers protect each other by making it so their supervisors, and even the public, do not know any additional information
Ramifications for criminal allegations or unethical behavior : There could be many ramifications for criminal allegations or unethical behaviors by a law enforcement officer.
Human resource development-human resource management : Which do you think is more important to an organization, human resource development or human resource management? Explain the differences between the functions

Reviews

Write a Review

Finance Basics Questions & Answers

  Fundamental concept in finance

Different investors have different risk tolerance levels. Some investors may choose not to invest in stocks because they do not like the volatility of the stock market

  Find an expression of the present value

A perpetuity starting January 1, 2017 pays 2 every January 1 in odd years and 3 every January 1 in even years. Find an expression of the present value.

  Major objectives of healthcare financial management

Influencing the method and amount of payment is one of the six major objectives of healthcare financial management. Explain how a healthcare organization can af

  Value of mega profit corporation without leverage

What is the value of Mega Profit Corporation without leverage? What is the value of Mega Profit Corporation with leverage?

  Strengths of comparables methods of stock valuation

List and explain three different major strengths of the Comparables methods of Stock Valuation compared to the Discounted Free Cash Flows methods of Stock Valua

  Differentiate between a traditional bricks-and-mortar store

Simply speaking, increasing inventory turnover is an important goal for a retail manager. What are the consequences of turnover that's too slow? Too fast?

  Discuss about capital rationing

It is not uncommon for management to accept capital rationing rather than to issue new shares. In this context, it is often argued that the firm's shares.

  What is the eps if the debt is issued

They will use the proceeds to repurchase shares. Before the debt issue, EBIT will be $60,800. What is the EPS if the debt is issued? Ignore taxes.

  Are these linear profiles acceptable profiles

Apply the boundary conditions for a laminar boundary layer and evaluate the velocity and concentration profiles. Are these linear profiles acceptable profiles? Give reasons for your decision.

  Calculate the npv of alternative

You have inherited an apple orchard and want to sell it in the next four years. An expert in apple orchard valuation has estimated the after-tax cash flow you

  Why are liquidity ratios for utility and fast food companies

Based on these ratios, what is your advice? If another student makes different suggestions, challenge them to justify their choices.

  Explain total value of investment

XYZ has 402,014 shares of common stock outstanding, a P/E ratio of 8, and $508,678 in net income. The board of directors has just voted in favor of a 4-for-1 st

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd