How companies accuse investors make their quotations fall

Sometimes, companies accuse investors of performing credit sales which they make their quotations fall. Is it true?

E

Expert

Verified

This is true: there are companies which accuse investors who perform credit sales of making their quotation fall. Although the stock market is only a financial market and prices fall while there are more sales than purchases and vice versa. There investors who perform credit sales and also investors who sell their shares – with those who do not buy – are all evenly responsible for the fall in prices. Why not accuse those investors who do not buy, as well? If that position were consistent, they must also accuse the investors who chose to buy of forcing the price up!

   Related Questions in Corporate Finance

  • Q : Earnings management What do you mean by

    What do you mean by Earnings management and what are their actions and activities?

  • Q : Intrnational financer what are the

    what are the objectives of international finance

  • Q : Discounting Free Cash Flow or

    Which of these two ways is better: discounting the Free Cash Flow or discounting the Equity Cash Flow?

  • Q : Explain lognormal random walk based on

    Explain lognormal random walk based on Brownian motion.

  • Q : What is Box Spread Box Spread: This is

    Box Spread: This is another strategy which seeks to exploit the arbitrage opportunities which are available in the market. In case that the options are correctly priced, this strategy would earn only the risk free rate. However, due to existence of im

  • Q : Problem on annual lease payments Taurus

    Taurus Corporation needs a computer, which it can buy for $100,000. Taurus will depreciate the computer uniformly over its useful life of 5 years. An investment tax credit of 7% is also available, and the computer will have no residual value. Taurus plans to borrow th

  • Q : When the dividend shows real money The

    The dividend is the part of the net income which the company distributes to shareholders. When the dividend shows real money, the net income is also real money. Is it true?

  • Q : Who proposed modern quantitative

    Who proposed a modern quantitative methodology for portfolio selection?

  • Q : Active versus Passive fund managers

    Active vs. Passive fund managers: Passive fund managers adopt a long term buy and hold strategy. Usually, stocks are purchased so that the portfolio’s returns will track those of an

  • Q : Relationship between the preferred

    Quetion: A private equity fund invests $100 million into a portfolio company and receives 100% of the preferred stock and 80% of the common stock of the company.  The preferred stock carries a face value of $1

©TutorsGlobe All rights reserved 2022-2023.