NationStates Jolt Archive


Stock Question

Empress_Suiko
14-08-2006, 07:32
This has nothing to do with school, but my own personal interest. How do you know how much stock a company has? If a person owns 51% of the companies stock, how do you know how much stock that person holds and how much stock the company has?


I don't think its volume.

The number of shares of a particular stock that is traded in a given period of time. "Daily volume" would be the number of shares traded in one day.
Empress_Suiko
14-08-2006, 07:53
Doesn't anybody know? :(
The Black Forrest
14-08-2006, 07:55
If you mean the execs, they have to tell their holdings. You can look it up and ask any corporation. They have to present it.

I think if you hold a certain amount; it gets listed as well. Someone correct me on this.
Empress_Suiko
14-08-2006, 07:58
If you mean the execs, they have to tell their holdings. You can look it up and ask any corporation. They have to present it.

I think if you hold a certain amount; it gets listed as well. Someone correct me on this.


Where would it be listed? I can't find it on the NYSE.
Wilgrove
14-08-2006, 07:58
Hmm I have a stock question too. Let's say I get majority share of the stocks of a company, what kind of powers does that give me over the company?
The Black Forrest
14-08-2006, 08:00
Where would it be listed? I can't find it on the NYSE.

You have to go to the company prospectus for such info. The stock exchange only lists stock activity.
The Black Forrest
14-08-2006, 08:01
Hmm I have a stock question too. Let's say I get majority share of the stocks of a company, what kind of powers does that give me over the company?

Majority share holder has considerable influence.
Empress_Suiko
14-08-2006, 08:02
Hmm I have a stock question too. Let's say I get majority share of the stocks of a company, what kind of powers does that give me over the company?


Depends on the company, some require 2/3 vote to pass anything, that means if you hold less than that they vote to give veto power to a minority shareholder or block of shareholders that own 1/3 of the shares. In some cases, a single entity can maintain control, with only 33.4% of the outstanding shares. Ford Motor Company's ownership of 33.4% of Mazda is an example of a controlling interest with minority shareholding.
Empress_Suiko
14-08-2006, 08:11
You have to go to the company prospectus for such info. The stock exchange only lists stock activity.


Thanks, I'll try to find it.
New Granada
14-08-2006, 08:22
Market cap / price of share = number of shares.

You can find the market cap and the price on google finance, just search the ticker name.
Empress_Suiko
14-08-2006, 08:30
Market cap / price of share = number of shares.

You can find the market cap and the price on google finance, just search the ticker name.



Um wow. From that I got that disney has over 2 billion stock.:eek:
Empress_Suiko
14-08-2006, 08:42
Market cap / price of share = number of shares.

You can find the market cap and the price on google finance, just search the ticker name.


Umm. Why would disney have less shares than Time warner but be at a higher cost?
Montacanos
14-08-2006, 08:45
Umm. Why would disney have less shares than Time warner but be at a higher cost?

What do you mean? Stocks dont have a set value, they are a division of the company. In your example, Disney stock is worth more. Depends on the kind of stock though.
Wilgrove
14-08-2006, 09:02
Hmm, I want to get control of Viacom, and sell Clone High to Turner so he can air it on Adult Swim. That would rock.
Empress_Suiko
14-08-2006, 09:05
What do you mean? Stocks dont have a set value, they are a division of the company. In your example, Disney stock is worth more. Depends on the kind of stock though.


Disney's stock is almost $13 higher than Time Warner, but Disney has almost 2billion less stock.
Empress_Suiko
14-08-2006, 09:06
Hmm, I want to get control of Viacom, and sell Clone High to Turner so he can air it on Adult Swim. That would rock.


And I want to have a three way with Ashley Tisdale and Brenda Song...aint gonna happen.:)
Wilgrove
14-08-2006, 09:25
And I want to have a three way with Ashley Tisdale and Brenda Song...aint gonna happen.:)

It can if I can prove that I am the Heir of Bill Gates!
Dzanissimo
14-08-2006, 11:45
The quantity of stocks has no significance. It is like having either 100 one dollar bills or 10 ten dollar bills in your wallet. Despite apparent apparent differences in quantity there is no real difference.

Look at market capitalization ;)
New Granada
14-08-2006, 21:13
Umm. Why would disney have less shares than Time warner but be at a higher cost?


You'd have to ask time warner and disney, it's up to them.
Vetalia
14-08-2006, 21:38
Disney's stock is almost $13 higher than Time Warner, but Disney has almost 2billion less stock.

Supply and demand. Disney has less stock but there is more demand for it, so the average price of a share rises to accomodate the smaller supply. Time Warner has more shares but less demand, so the price is lower to compensate. Also, the health of a company affects its price independent of shares; Disney has been doing pretty well while Time Warner has had problems in recent years (the AOL merger is notorious). Therefore, TWX is less valuable than DIS because investors simply don't feel their shares are worth as much as Disney's.

The number of shares hinges on the amount issued and whether or not the company has purchased back. Companies issue shares primarily to raise capital and increase their market capitalization, which makes it easier to make accquisitions providing the company is doing well. At the same time, if their stock price is lagging (as is the case with a lot of tech stocks who binged on share issues in the bubble of the late 90's) a company with some cash lying around might buy back shares for a hopeful boost to their share price.

The last thing to note is splits. If a company's stock is performing well and they think that it will continue to do so, they will split the stock in to multiple shares in order to reduce the price per share and encourage more investors to buy their stock, hopefully increasing its real value. It's usually seen as a vote of confidence in the company by the company's management.

Example:
A company has 100 shares of stock each with a price of $50. The market capitalization is 100 × $50 = $5000. The company splits its stock "2-for-1". There are now 200 shares of stock and each shareholder holds twice as many shares. The price of each share has been adjusted to $25. The market capitalization is 200 × $25 = $5000, the same as before the split.

That's good and all, but the real benefit is in the postsplit period. Let's say the price of the new shares rises from $25 to $40; before the split, an $15 rise in the price would only increase the market cap by $1500 to $6500. However, because there are 200 shares the rise in market cap is $3000 or double the gain from only 100 shares.
Kamsaki
14-08-2006, 21:41
British Airways is going to be a really good buy in about three days time.

I say that, of course, because I'm going to be buying a few shares in two days time.
Rubiconic Crossings
14-08-2006, 21:43
In the US listed companies must report via a 10-K to the SEC I think?

In the UK you find that information out from Companies House....but that information is in the public domain if it is a public company...

and the subject is a minefield and you are better off asking a expert...
Vetalia
14-08-2006, 21:44
British Airways is going to be a really good buy in about three days time.

I say that, of course, because I'm going to be buying a few shares in two days time.

Change few to few million and you'd be right on.:p

But then again, BAB is doing pretty damn well. If oil prices keep on their downtrend it'll do even better; the airline industry is doing great and will be getting a lot stronger over the next few years. I'd recommend buying it myself.
Vetalia
14-08-2006, 21:48
In the US listed companies must report via a 10-K to the SEC I think?

All you have to do for public companies is go to Yahoo! Finance and put in the ticker symbol; on the left-hand side of the stock's page is a section that says "Ownership".

It gives you all of the major owners, insiders, and insider transactions.
Rubiconic Crossings
14-08-2006, 22:06
All you have to do for public companies is go to Yahoo! Finance and put in the ticker symbol; on the left-hand side of the stock's page is a section that says "Ownership".

It gives you all of the major owners, insiders, and insider transactions.

yeah thats right...and I was thinking of 10Q (not 10K) as well! Doh!

you do get a fair amount of info from the 10Q though...

but whats a 8-K?
Vetalia
14-08-2006, 22:10
yeah thats right...and I was thinking of 10Q (not 10K) as well! Doh!

you do get a fair amount of info from the 10Q though...

but whats a 8-K?

I think an 8-K is filed whenever the company does something that requires them to update their 10-K report; I definitely recall HP and Google filing 8-Ks when they made changes to their management or business performance.
Rubiconic Crossings
14-08-2006, 22:15
I think an 8-K is filed whenever the company does something that requires them to update their 10-K report; I definitely recall HP and Google filing 8-Ks when they made changes to their management or business performance.

The federal securities laws require publicly traded companies to disclose information on an ongoing basis. For example, domestic issuers (other than small business issuers) must submit annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K for a number of specified events and must comply with a variety of other disclosure requirements.

http://www.sec.gov/answers/form10k.htm

So you have constant filings to the SEC...

Lots of paperwork! LOL
The SR
14-08-2006, 22:21
ES,

think of it this way. buying one share in disney means you legally own 1/2 billionth of disney. that means you get 1/2000000000 of the profits and 1/2000000000 of a say

you buy shares for 2 reasons.

1: to get a vote at the agm (which usually only holds if you want to but 51% of the stock, ie you own the company outright so you can sack the board etc)

2: to make money. this is done 2 ways.

1 dividends (the amount of profit after the bills are paid is sometimes, but most certainly not always, paid out to shareholders depending on the amount you own pro rata.

2 the market price rises because people reckon the firm will have a good year, meaning you can sell off for acapital appreciation.

so essentially disney is considered a better future profit prospect than time warner, hence its worth more.
Vetalia
14-08-2006, 22:25
The federal securities laws require publicly traded companies to disclose information on an ongoing basis. For example, domestic issuers (other than small business issuers) must submit annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K for a number of specified events and must comply with a variety of other disclosure requirements.

http://www.sec.gov/answers/form10k.htm

So you have constant filings to the SEC...

Lots of paperwork! LOL

Bureaucracy is fun! I guess it's reassuring to accountants that companies have to file so many forms...it kind of guarantees your job security.
Rubiconic Crossings
14-08-2006, 22:40
Bureaucracy is fun! I guess it's reassuring to accountants that companies have to file so many forms...it kind of guarantees your job security.

http://img.photobucket.com/albums/v427/vonbek/mittens.gif
Arthais101
14-08-2006, 22:43
Disney's stock is almost $13 higher than Time Warner, but Disney has almost 2billion less stock.

The value of a company is the amount of stock it has * the value of each individual share of stock.

The AMOUNT of stock a company has is decided by the company, it is not a representation of the value of the company.

If disney were to today split stock (make each share into 2) the price would drop to half its current value. The amount of stock is set by the company. The VALUE of the stock is set by market.