• Where the price is not determined by demand and supply forces.
• If the price is not consistent with the activities of the firm e.g a decline in share price of a firm with very good growth prospects.
• Price is not compatible with the price of other similar shares of firms in the same industry
• If there is insider trading:
This situation arises where individuals within the firm in privileged positions e.g top management and director take advantage of the information available to them which has not been released to the public.
They may use such information to dispose off share to make capital gains or avoid capital loss
Kavungya answered the question on March 12, 2019 at 05:47
-
State the factors to consider when computing stock..
(Solved)
State the factors to consider when computing stock index.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the factors Affecting Share Prices.
(Solved)
Give the factors Affecting Share Prices.
Date posted:
March 12, 2019
.
Answers (1)
-
State the factors to Consider when Buying Shares of a Company.
(Solved)
State the factors to Consider when Buying Shares of a Company.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the trading mechanism at NSE.
(Solved)
Describe the trading mechanism at NSE.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe 3 stock market terminologies.
(Solved)
Describe 3 stock market terminologies.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the 3 types of jobbers.
(Solved)
Describe the 3 types of jobbers.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe a speculator.
(Solved)
Describe a speculator.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe a broker.
(Solved)
Describe a broker.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the advantages of Investing In Shares.
(Solved)
Give the advantages of Investing In Shares.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the examples of financial intermediaries in Kenya.
(Solved)
Describe the examples of financial intermediaries in Kenya.
Date posted:
March 12, 2019
.
Answers (1)
-
Define financial intermediaries.
(Solved)
Define financial intermediaries.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the features of OTC Markets.
(Solved)
Give the features of OTC Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
Describe the types of Stock Markets.
(Solved)
Describe the types of Stock Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
State the roles of Secondary Markets in the Economy.
(Solved)
State the roles of Secondary Markets in the Economy.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the economic Advantages of Primary Markets.
(Solved)
Give the economic Advantages of Primary Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
Give examples of Financial Instruments in Money market.
(Solved)
Give examples of Financial Instruments in Money market.
Date posted:
March 12, 2019
.
Answers (1)
-
Give examples of Capital market financial institutions.
(Solved)
Give examples of Capital market financial institutions.
Date posted:
March 12, 2019
.
Answers (1)
-
Give the Functions of Capital Markets.
(Solved)
Give the Functions of Capital Markets.
Date posted:
March 12, 2019
.
Answers (1)
-
State the Functions of Financial Markets in the economy.
(Solved)
State the Functions of Financial Markets in the economy.
Date posted:
March 11, 2019
.
Answers (1)
-
Give the Reasons for Significant Growth in Venture Capital in the Developed Countries.
(Solved)
Give the Reasons for Significant Growth in Venture Capital in the Developed Countries.
Date posted:
March 11, 2019
.
Answers (1)