On The Share-Pricing Model Of The Medium Or Small-Sized High-Tech Enterprises

With the high-tech time coming, latest technology plays a more important role in economic development. Being short of money, medium/small-sized high-tech enterprises have to sell their shares to get fund, because there is no standard price for their shares in the open market, the prices of their shares mainly depend on estimation which is also important for investors to make investment and decision. So the share-pricing model becomes more and more widely used. In this paper, we compare the feasibility and limitation among several pricing models, and put forward the option share-pricing model.Chapter 1 gives the definition of high technology and high-tech enterprise, stress the importance of developing medium/small-sized enterprise and the usage of the pricing model. Chapter 2 discuses the relationship between value and price, talks about the value of a company and the price of its share, analyze the formation of the company's value and the estimation. Chapter 3 introduces the development of the pricing model, make a brief introduction of several used pricing models and their application, their feasibility and limit. So we put forward the option share-pricing model. Chapter 4 briefs the theory of the option pricing model, analyze a series of suppositions, variables , premium of the model considering the high-tech enterprises' feature, discuss the application of the model when the enterprise is in possession of patient and investment. Chapter 5 stresses that it is important for an enterprise to make a strategy; analyze the market risk and demonstrates the liability and usage of the model with a company's data. In the end we point out some notes and some drawbacks of the model.