Saturday, April 4, 2009

international stock market (1)

Other assets that have become more widely traded across international borders in recent years are shares of common stocks (equities) of corporations.This type of asset differs from bonds in that the holding of stock by individuals and institution (for example,insurance companies,pension funds)bring with it ownership of the company whose stock is held . Hence,in theory ,there is an element of control involved with stocks that is absent from bonds .In practice ,however,any one investor generally holds such a small relative amount of any given corporation is stock that effective control by that investor is precluded.Nevertheless ,the financial features of stock differ in a way that makes the purchase decision more complicated than is the case with bonds and other debt instruments .an investor considering the acquisition of a company is stock is faced with making an uncertain projection of the company is future earnings , the variability of those earning ,the real factors lying behind demand for and supply of the company is product that may influence the firm is future courses of action , the ratio of the stock is price to the company is earnings per share , the dividend payout rate ,and many other performance indicators.

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