--%>

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 : 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 : Selling or purchasing problem Atlas

    Atlas Realty Company is interested in buying a house and renting it out for $12,000 a year, collecting the rent in advance each year. This will depreciate the house over 25 years; however sell it after 15 years at twice its purchase price. The maintenance expenditures

  • Q : Overview of capital market efficiency

    Provide a brief overview of Capital Market Efficiency?

  • Q : What is optimal capital structure What

    What is optimal capital structure?

  • Q : Shall we use the arithmetic mean or the

    The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?

  • Q : Problem on annual mortgage payment You

    You just took out a variable-rate mortgage on your new home. The mortgage value is $100,000, the term is 30 years, and initially the interest rate is 8%. The interest rate is fixed for 5 years, after which the time rate will be adjusted according to the prevailing rat

  • Q : Explain company creates value for its

    Is this true that a company creates value for its shareholders in a year when this distributes dividends or when the quotation of the shares increases?

  • Q : Market for Corporate Bonds Write some

    Write some point regarding Market for Corporate Bonds.

  • Q : Types of agency Types of agency :

    Types of agency: Specific types of Agency include:A) Auctioneers: Are an agent of vendor until the fall of the hammer when they become an agent for the purchaser.B)

    Q : Evaluating Beta of a Corporation

    Baldwin Corporation is planning to expand into the business of providing on-demand movies. Baldwin has debt-to-equity ratio of .25, its pretax cost of debt is 9%, and its marginal tax rate is 40%. The Harrington Corporation is already in the on-demand movie business,