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Mintra Mitchell
Student (University), United Kingdom
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Consequences of Stock Price Decrease
🔥 NEW Hi, I would like to know if a company stock price decreases, why is this an issue and what are the consequences?
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venkataramanan
Financial Consultant, United States
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Consequences of Stock Prices
It is clear that the market's future outlook for this stock is bleak. The down trend should be taken as a warning signal for investors to get out of the stock. However, if it's only short-term volatility this should not be viewed too seriously.
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Anirban Ghosh
Management Consultant, India
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Stock Price Parameters
The price of a stock depends upon certain parameters.
In a situation where other risk points in the market are stable, the stock price mainly depends upon the company's current profile. The stock price is then nothing but the demand-supply procedure of selling of company's goodwill and asset value. Now if in such a stable market the stock price decreases, it means the company's profile or any other business value dropped, and demand for the stock consequently fell down.
The conclusion then is understandable that the company is doing bad in its business.
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Reynaldo Bonifacio
Accountant, Philippines
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What a Stock Price Decline Means
A decline which is relevant to the market may indicate impairment of an equity instrument. The judgments made in determi...
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IJzer
Turnaround Manager, Netherlands
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Drop in Stock Prices
Two other potential consequences of a decrease in stock price:
1. More shares need to be sold when trying to get additi...
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NITU SINGH
Student (MBA), India
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Meaning of Decline in Stock Price
A company issues stocks to raise capital.
If a company's stock price declines in the stock exchange then it implies inv...
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Blessing Katuka, Zimbabwe
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Find the Reasons for Drop of Stock Price!
The most important thing you have to know is the cause of such a decrease in the share price the reason and its effects ...
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GS RADJOU
CEO, France
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Stock Price Decrease
It can be a reason or opportunity to buy stock too. But in your question it is an issue. If it increases too much it may...
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NITU SINGH
Student (MBA), India
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Analysis of a Stock Price Decrease
@GS Radjou: Absolutely, the P/E ratio is a vital measure to look at, but a proper fundamental analysis report of the com...
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Michela Arno
Financial Consultant, Netherlands
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Stock Price Decrease
The performance of the stock depends strongly on the evaluation of the future earning potential made by financial analys...
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venkataramanan
Professor, India
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2 Categories of Reasons for Stock Prices Decreases
The reasons for decrease in stock prices may be grouped under 2 major heads:
1. External - environmental, industr...
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