Factors Affecting the Market Price of Stocks

question 39

Essay

Factors affecting the market price of stocks
(a)Murdock Corporation has outstanding several different stock issues.For each of the types of stock listed below,briefly describe a situation or circumstance that would cause the market price of that type of stock to increase.
Preferred stock
Common stock
Convertible preferred stock
(b)How would the increase in market value of any of Murdock's stock be reflected in Murdock's financial statements?

Recognize the importance and methodology of setting SMART goals for personal and professional development.

Distinguish between terminal and instrumental values and their roles in ethical decision-making.

Grasp the significance of ethical audits, ethics tests, and ethical decision-making frameworks in guiding ethical behavior.

Analyze the stages of moral development according to Kohlberg and their implications for managerial behavior and ethical reasoning.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to supply goods for and the actual amount received by them when sold.

Perfectly Competitive Industry

An economic theory describing a market structure where firms sell identical products, no single buyer or seller can influence the market price, and information is freely available.

AC

AC, or Average Cost, is the cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, reflecting the economic benefit to consumers.