How is share price of a company affected by losses?


0
hello sir, what if the company is facing losses then will your share price will go down and you will face the loss as per your ownership in the company????

2 Answer(s)


0

Yes, if a company is facing loses that share price will go down and so you will suffer loses based on how many shares you won in the company.

Recent example is Everonn. Check out their stock price here - http://www.google.com/finance?q=NSE%3AEVERONN
The company posted loss in the last quarter and its CEO was arrested. This lead to a crash in the stock price.

But loses are not the only reason a companys stock price crashes. Other reasons like competition, economy, legal etc also contribute.

0

Yes... there is direct co-relation between profit earned by company and its share price. If company making losses then no one would like to invest in it and vice a versa.