How Corporate Events Affects Stock Prices

By SiliconIndia   |   Tuesday, January 31, 2012
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Bangalore: We buy shares, we invest but we tend to forget some vital essentials of stocks. There are many corporate events running in a company which may affect the stock prices. When we buy a share, we have a tiny ownership in the company. The company’s intention is to raise the shareholders’ stock values and it also becomes the management’s goal. Hence, any change in the company makes affects our profits through stocks. Here are the factors and events which could make the stock prices fluctuate.

1. Announcement of Dividends

Dividends are the fraction of the company’s profit which is to be distributed among its shareholders. Announcement of the dividends may impact the stock prices depending upon the amount declared. Higher dividends will help the company to retain good stock prices. The stock prices may get a hike as everyone would like to buy the shares is the dividend is given in a good number. But in case the dividend is low, this may create an impact in a perfect market too and the stock prices may fall.

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