Business, 28.10.2020 17:20 mdlemuslopez

Determine whether stock prices are affected more by long-term or short-term performance. Provide an example of the effect that supports your claim.

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Answer from: jadensababe9151

Short term can perform better.

Explanation:

In the market, the performance of the stock is a very important and critical barometer that determines the company's health. The stock price of a company helps the investors to evaluate the earnings and the growth of his in the future.

Both short term and the long term performances of the company impacts the stock performance of the company. The stock price can both rise and fall in a short term performance or a long term performance.

However, for a short term performance, things are very volatile and there can be a lot of fluctuations in the stock prices. While a long term performance is smooth and is not volatile.

For example,

Suppose ABC Company decides to give a $2 dividend for one share (DPS) next year and we estimate this to increase by 6 percent per year thereafter. Now let us assume that the required rate of the return on the ABC Company stock is 10%. So currently, ABC Company stock is at a trading value of $12 for one share. So using the formula, now we can find the intrinsic value of 1 share of ABC Company stock is:

$\frac{2.00}{0.10-0.05}$

= $40

Thus, ABC company stock is $40 for one share and now it is trading at a value of 12 dollar.

Thus from the above example, we can say that in short term, the stock can perform better.

Answer from: Quest

someone i feel is a leader in my life id have to say would be my mother because she has give me great advice in life and got me out of tough situations. some characteristics she has are creativity, honesty, commitment, respect for others, and communication. one example of a situation when she demonstrated leadership was when i was working late on homework and i started to get stressed and got upset, she asked me if i needed some , and she me with my work. she demonstrated communication and commitment.

i don't know if this is exactly what your looking for but i hope this !

Answer from: Quest

Acapitalist economy is when all goods are owned by the government or private industries.

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Determine whether stock prices are affected more by long-term or short-term performance. Provide an...

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