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Application Of The Index For Ability Of Increment Of Company Value For Investment In Securities

Posted on:2004-02-09Degree:MasterType:Thesis
Country:ChinaCandidate:X L YangFull Text:PDF
GTID:2156360095453297Subject:Business Administration
Abstract/Summary:PDF Full Text Request
It has been over ten years from the birth of the stock exchange markets in China. They have promoted development of economics in China. The number of public companies is increasing, and the number of investor is so. However, the stock exchange markets in China are new developed, are not consummate. The behavior of many investors is of venture: speculate in stocks or follow others without any knowledge of the stocks. Thus, the prices of the stocks rose suddenly and sharply or slumped. Many investors lost lots of money. The markets want for value-investment very hard.It is very difficult to calculate the value of a company, because the cash flow in the future is not easy to estimate. The price fluctuates on the base of the value of a matter. The price rises after the value of a matter increases. The calculation of the indexes for ascending ability of the value of a company is not too difficult. If one know the ascending ability of the value of a company, he can know the direction of the fluctuation of the price of the stock.The ascending ability of the value of a company, depends on economic situation (or business cycle) and increase of a industry (or industry life cycle ) and a company (or company cycle ) .I found that, return on ownership equity (ROE) of a public company varies with a periodicity, and that sometimes the stock price varies with return on ownership equity (ROE) of a public company. We can know the generalization ofprice of stock.I try to design a set of indexes to evaluate and to forecast the ascending ability of the value of a company. I can refer from the results for investment. The results show that the portfolio choose by the indexes made more incomes than the* market standard.
Keywords/Search Tags:value of company, ascending ability, index, stock investment
PDF Full Text Request
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