PURPOSE OF STOCK VALUATION AND FACTORS AFFECTING STOCK PRICE

Stocks are a basic concept that is "in the heart" of any investor (investor) in securities. But, do all investors have a thorough understanding of how stocks are valued and the factors that affect stock prices? Why stock valuation?

WHAT IS THE STOCK PRICE?

Current Vietnamese law defines a stock as a certificate issued by a joint-stock company, journal entry or electronic data confirming ownership of one or more shares of that company.

Accordingly, stock price is understood as how much you have to pay to own a share. This price is not fixed but will fluctuate depending on the demand of the market between the seller and the buyer.

WHY SHOULD THE STOCKS VALUED?

The purpose of stock valuation is to determine the true value of a stock at a given point in time, in order to determine the potential of the stock and to make relevant investment decisions.

For businesses, stock valuation is one of the important steps of a joint stock company when it wants to offer shares, raise capital and increase its influence in the market.

For investors, stock valuation helps investors know which stocks are worth buying and have the greatest potential for return. An easy way to understand that is to evaluate how much the stock is worth. Then, we will proceed to buy the stock if the stock price is lower than the value we value. Or sell the stock (if the investor owns the stock) if the share price is already higher than the valuation to make a profit.

THERE ARE 05 KEY FACTORS THAT STRONGLY IMPACT, DIRECTLY TO ALL STOCKS IN SPECIFIC MARKET:

The development of the economy: Stock prices are greatly influenced by the world economy and especially the national economy. Stock prices tend to be proportional to the growth of the economy, i.e. stock prices rise when the economy is growing and prices fall when the economy is down.

Political situation: The political situation is also decisive to the stocks price because when there is political instability, investors are not confident enough to continue investing, so the stock price will tend to decrease.

Law of supply and demand of the market: Any commodity market is governed by the law of supply and demand. The stock market is the same, usually when a stock is bought by many people, the share price will tend to increase and vice versa.

The companys financial statements: If the companys operating results show that the company is growing well with high revenue and growth, it is likely to continue to increase in the future. The company will grow rapidly. Conversely, a company whose business situation is going down, the stock price will tend to decrease.

Investor psychology: The stock market is a sensitive market, only one disturbing information can make the market fluctuate wildly. At this time, investors need to have a strong mentality to filter out accurate information and make investment decisions when having careful calculations.

See more: Valuation of enterprises for the purpose of issuing shares

However, investors should also note that, there is no formula or absolutely accurate valuation method to appraise the price for all stocks. Because each type of business, each business cycle, each macro condition, future orientation, internal strength of the enterprise, and investor capacity give a different value. At this time, Enterprises/Investors need to consult securities experts or find a reputable professional stock appraisal unit.

STOCK VALUATION SERVICE PROVIDER

Valuation service, stock valuation is one of the specialized areas of Indochina International Appraisal & Investment Joint Stock Company (INA). We are always confident with our strengths such as: with many years of experience, an abundant data warehouse, a large and highly qualified team of appraisal experts, a fast, strict and optimal appraisal process. reducing appraisal costs… Besides, INAs SUNVALUE service will provide customers with information about the value of properties with high reliability for each appraisal purpose.

TO DETERMINATE THE VALUE OF REAL ESTATE ONLINE QUICKLY PLEASE VIEW HERE: https://dinhgiatructuyen.com.vn/