Stock Valuation

Stock Valuation

Overview

One of the most difficult issues that pervade everyday for investors is the stock price. There are two types of securities issued by the company that are common stock and preferred stock. For the fundamental analysis of the stock valuation, this is based on the stock intrinsic value and the predictions of the future cash flows and profitability of the business. The price of the stock depends on the supply and demand of the product.

Legal rights and privileges

The company by laws and the charter has set certain rights for the shareholders. For instance, common stock holder has ...