Get premium membership and access questions with answers, video lessons as well as revision papers.

In reference to the stock exchange explain the meaning of (a) Bear market (b) Bid price (c) Dividend yield (d) Going public

      

In reference to the stock exchange, explain the meaning of
a. Bear market
b. Bid price
c. Divided yield
d. Going public

  

Answers


Charles
a) Bear market:
A speculative market where market sentiment is that price will fall. Bears sells them hoping to buy them cheaper later (when the prices have fallen)

b) Bid price
This is the price at which a trader (broker) intends to buy a security. The buying broker bids that is he quotes his price, the bid price.

c) Dividend yield
The dividend yield indicates the return in terms of dividend as a fraction of the market price.
DIVIDEND YIELD=Dididend per share ? market price per share

d) Going public
This means floatation of shares to the public. This is the invitation of the members of the public to subscribe for shares in the firm. After going public the shares are traded in the NSE.
Charles W answered the question on December 27, 2017 at 11:33


Next: Explain any four roles of stock exchange in an economy
Previous: Explain the main basic factors that requires to be taken into account in selecting the best method of financing a plant expansion

View More Accounting Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions