Factors Affecting the Market Price of Shares

question 75

Essay

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

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Definitions:

Schachter-Singer Experiment

A psychological study that explored the connection between cognitive processes and emotions, suggesting emotions result from physiological arousal and situational cues.

Emotional Experience

The complex state of feeling that results from the interaction of biological, psychological, and social factors, influencing mood, temperament, and personality.

Visceral Reaction

An instinctive, gut feeling or reaction, not influenced by logical reasoning or analysis.

Cognitive Interpretation

The process by which an individual perceives, organizes, and interprets their thoughts and surroundings.