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Episode 7:
• #7 - Share Price | You...
You're reading the share price incorrectly all wrong. Yes, if you compare a company's share price to the prior year/month and find it to be low, you can assume that the company is making a loss.
You can't determine a company solely on the basis of its present stock price. Price is adjusted as Dividends, bonuses, and rights are paid to shareholders
To make things clearer. For instance, Millat Tractor (MTL). When you look at the share price, you'll notice that the company's share is down and surely making losses. The company, on the other hand, has returned more than 50% of its investment to its shareholders in the form of bonuses and dividends.
A company trading under Rupees 10 doesn't make it cheap nor does a company trading above Rupees 1000. The actual worth of a company depends on its earnings, future prospect,s and excellent management. To gauge the company share price with the return, you can use ROI tool on Sarmaaya.pk
ROI tool to determine the actual return on your investment.
sarmaaya.pk/ps...
Episode 6:
• #6 - How To Analyze A ...
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