Finance
Stock Valuation Questions
The market price for a stock or a bond may be influenced by both positive and negative risks. Using the example of Apple it is possible to consider two potential risks.
Risk
Apple Inc. is well-known for its aggressive defense of its patents; the best known cases are between Apple and Samsung with cases in more than 50 cases across multiple countries at one point in 2012 (Mueller, 2012). Apple and Samsung both had victories and defeats which were aggressively fought. These battles show how important development and ownership of a patient can be, with firms seeking to protect their intellectual property. A potential threat may emerge if Apple faced a claim of credible claim of patent breach from another major supplier for a core product, where stockholders may fear that the firm may be liable for a potentially large settle and/or withdraw the offending products from relevant markets. The potential of a major claim which could impact on profits may drive down the share price.
Risk 2
Another risk that could impact on the share price of Apple could be the development of disruptive technology which may threaten the market position of Apple. A major change in technology that is attractive to the market may attract consumers away from Apple to the new firms' products, which may impact on sales in the short-term. In the longer term the firm may have a significant...
The interest of certain categories of public in promoting this trend has significantly intensified. Therefore, the demanded quantity of organic products is likely to increase. 2. There are several factors that influence the organic products supply. The most important factors are represented by prices, costs of production, prices of traditional products, weather, and technology. In the case of the influence of prices, if they increase the supplied quantity of organic
In 2004, FASB (Financial Accounting Standards Board) issued a draft meant to provide guidelines of how entities should estimate fair value prices for reporting purposes. Escape clause - is a part in any contract that specifies the conditions in which one or more parties involved in the contract may avoid performing its duties as specified in the contract. 14. The import substitution is a policy through which countries decide to substitute
To avoid repeating negative historical experiences, regulatory regimes need to block the control and domination by networks/platforms. In the report, "Infrastructure and Development: A Critical Appraisal of the Macro Level Literature," Stephane Straub (2007) reported that at times, in some developing companies, "the hope of getting a fixed-line installed is a distant and costly dream" (p. 4). Meantime, the primary option for the individuals waiting for fixed-line telecommunications services
For example, two exploration companies in a portfolio of four securities is poor diversification. It is also important to consider that convertibles and rights will eventually turn to ordinaries, meaning that those forms of equity do not diversify the risk away from ordinary shares. Time horizon is another consideration to take into account (No author, 2010). The time horizon of an investment is in part related to the risk of
Seeking to raise more capital," Amazon.com plans to sell about $600 million of convertible subordinated notes" (Mutter, 2000, p. 80). Amazon, at the time, was considered a much more substantial risk than it is currently. The issuance of convertible debt seemed very speculative at the time. Mutter even wrote that investors did not like "the equity-like risk assumed by debt holders" (Mutter, p. 80). but, the investment has paid off
Oil replays 1980s bust discusses the collapse in oil prices in the mid-80s versus the collapse in oil prices in the second half of 2014. He notes that while the pace of decline was similar, than the reasons behind the decline are different. The author notes that time is an important variable. Prior to hydraulic fracking, oil projects were massive in scope and scale, and took many years and
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now