Common Stock Valuation: The Two Approaches
Ever since the inception of corporation as a separate legal entity, the common stock has become one of the most important financial instruments in the world today. When people commonly refer to the market, they are usually referring to the stock market. For laymen, investing is synonymous with stocks. Yet the average person does not know much about how stocks ought to be valued. This article will explain how common people value stock prices and how it differs from the theoretical model:
- What is Bond Valuation ?
- Bond Market Conventions
- How Interest Rates Affect Bonds ?
- Discounted Cash Flow Approach
- Assumptions During Stock Valuation
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