ACCT 201 Lecture 1: CPA 14 Readings Videos Questions
Document Summary
In cpa #12 we reviewed terminology and concepts relating to both common and preferred stocks. In the last cpa we studied the efficient markets hypothesis. valuations. By the collective action of tens of thousands of stock analysts and fund. If you believe in market efficiency, you need to (cid:498)thank(cid:499) those who undertake stock managers, stocks become (cid:498)efficient(cid:499) by their actions i. e. , the buying and selling of stocks that they believe are (cid:498)mispriced. (cid:499) Today we move on to discuss the various stock models for valuation. We start off with seeking understanding on what each model does. In cpa #15, for the next lesson, we will again use our financial calculators to undertake various exercises in stock market valuation methods. Please read all of section 7. (cid:885), (cid:498)common stock valuation. (cid:499) Stockholders expect to be rewarded through dividends and increasing share value. Collective action of buyer and seller results in equilibrium price (cid:498)market price(cid:499) based on available information.