Discusses why stock prices in the United States sometimes fall in response to good economic news. Effect of two countervailing forces, dividends and the market discount factor, on share prices; Differences between equities and bonds; Extend to which investors revise their dividend forecasts in ...
Why do bond prices fall when interest rates rise? The way bond prices are calculated can be a little tricky. Nevertheless, bonds can be tempting investments: They’re thought to be less risky than stocks, and the bond issuer makes a promise to repay the bonds. A diversified portfolio with...
Let’s fast forward to 2015 and ask why copper prices are falling this time around. Copper has become a big topic of conversation and when the copper prices fall the way that they have people ask many questions. With the overall world outlook dipping down and growth of undeveloped countries ...
It is well documented that stock prices on ex-dividend days drop by less than the value of the dividend, on average. This has commonly been attributed to the effect of tax clienteles. We examine data from the Hong Kong stock market, where neither dividends nor capital gains are taxed. As...
The stock market moves up, down and even because movement is absolute and static is relative. The movement of stock market is temporary. The rise and fall is a pair of contradictions in the stock market movement. There are two kinds of forces to rise and fall. Predicting the future of th...
The prices of crude futures declined in late September 2015 when it became clear that oil stockpiles were growing amid increased production. TheEnergy Information Administration(EIA) reported that global oil inventories increased in every quarter of 2015, with a net inventory build of 1.72 million ...
The prices of crude futures declined in late September 2015 when it became clear that oil stockpiles were growing amid increased production. TheEnergy Information Administration(EIA) reported that global oil inventories increased in every quarter of 2015, with a net inventory build of 1.72 million ...
While not purely predictable, bond prices tend to be more predictable than stock prices because their moves are more calculable based on the change in interest rates. If interest rates rise or fall, investors can quickly figure the theoretical new price of a bond with a simple calculation....
Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss. Stock markets are volatile and can fluctuate ...
Why are the share prices of large public companies like Ford (F) and General Electric (GE) that deliver great innovative products do not appreciate in value? Why invest in those company stocks? Why do stock prices change? Suppose the expected D1 is $2, the growth rate ...