The main way to obtain income from shares is the economic, financial and strategic development of the company, increasing the value of assets and expanding business.
Therefore, determining the value of the company's shares, it is necessary to use methods for estimating net assets, discounting cash flows and capitalizing profits.
When studying the market value of that share of the company, which accounts for the stake, an evaluation of the organization's shares is conducted.
Evidence of investing a certain amountOwn funds or capital in a joint stock company is an equity. Ownership of shares provides an opportunity to receive income in the form of dividends. The valuation of the company's shares is conducted in order to make security investments. Analysis of the financial condition of the organization and fundamental analysis of the market makes it possible to avoid possible mistakes in the conditions of constant fluctuations in the value of securities. In addition, the valuation of shares gives confidence in the reliability of decisions and the rationale for investing funds.
The company's shares are also valued during the restructuring of the enterprise, liquidation, sale and purchase transactions, transfer to trust management, and obtaining a loan against securities.
Nominal value is formed on the basis ofOfficial statements about the value of the action. It is at par, you can determine the approximate value of a security. For all ordinary shares, the nominal value is equivalent, but this does not apply to preferred shares.
The definition of the nominal price forThe study of its value as a financial instrument that is capable of making a profit. Securities can bring profit to the owner not only in the form of dividends, but also in the form of a certain increase in the value of the enterprise in connection with the improvement of financial indicators.
The most significant factors affecting the result of the share price are the degree of control, size and liquidity.
The nominal value of a share is determined byDividing the share capital by the total number of shares issued. Market and equity value of shares and the amount of dividends are determined on the basis of nominal value. It is for this purpose that the amount that is paid to shareholders in case of liquidation of the company is determined.
Unlike other types of securities,Which have a fixed yield, shareholders do not bear obligations for the repurchase of shares of the enterprise. The value of a share is determined from the ratio between supply and demand.