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I have an important question related to subsidiary business.
Is it true that the main element that change the value of any business (mainly subsidiary) is market value of its shares which obviously increases by customer loyalty and good reputation but they depend upon several factors like:
1) New shares are issued in market
2) shares issued at premium
3) Post-acquisition Profits
4) Fair value adjustments like Revaluation of Non-current assets
5) Intangible assets being purchased
6) Bidding or Takeovers
7) New R&D initiatives
8) Business partnership or venturesAre there any more factors that could increase or decrease the market value of shares of subsidiary business? Please define them.
Thanks ?
Hi,
The value of a company’s shares will depend on a variety of different factors, many of which you have mentioned above, but it is impossible to create a list of factors. The best way to stay on top of the factors would be to read the business press, so something like the Financial Times or New York Times or similar, as this will report on a news story and highlight how it has impacted the share price.
For the FR exam you would always be given the share price for use in any questions.
Thank
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