MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Market value of shares is influenced by
A
financing decision
B
investment decision
C
dividend decision
D
financial decision
Explanation: 

Detailed explanation-1: -Demand factors that can affect share prices include company news and performance, economic factors, industry trends, market sentiment and unexpected events such as natural disasters. Demand gives shares value. If there is no demand for a company’s shares, they will have no value.

Detailed explanation-2: -Decision on Financing A financial decision includes the amount of money to be raised from various long-term funding sources such as equity shares, preference shares, debentures, bank loans, and so on. This is referred to as a funding decision. In other words, it is a decision on the company’s ‘capital structure.

Detailed explanation-3: -It is essentially the price at which you can purchase or sell any share or bond in the stock market. Stock market value is heavily dependent upon the market demand for such shares, which, in turn, is determined by the overall performance and growth potential of a company.

There is 1 question to complete.