What makes your stock price go up and down.

Bibliographic Details
Title: What makes your stock price go up and down. (cover story)
Authors: Coyne, Kevin P., Witter, Jonathan W.
Source: McKinsey Quarterly. 2002, Issue 2, p28-39. 12p. 1 Diagram, 3 Graphs.
Subject Terms: *Stock prices, *Chief executive officers, *Net present value, *Investors, *Corporate finance, *Business forecasting, *Bankers, *Financial performance, *Sale of business enterprises, *Stock price forecasting, *Internal rate of return, *Strategic planning
Abstract: The article discusses factors which influence the price of stocks. Although net present value can be used for estimating the long-term intrinsic value of shares, it is often unreliable in predicting their price over the following few quarters. While chief executive officers are aware that when buyers are more anxious to buy than sellers are to sell, share prices rise, however understanding which buyers and sellers matter within the equation is difficult. Large trades can significantly move a company's stock price up or down. The author feels that companies should identify their stock price movers to increase their ability to make shareholder predictions.
Database: Business Source Complete
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ISSN:00475394
Published in:McKinsey Quarterly
Language:English