Question

The value of shares of a company as affected by ______________.

• A. Economic factors
• B. Political factors
• C. Social factors
• D. All the above

Answer 1

Answer: (D)

All the above

The value of a share is greatly affected by the economic, political and social factors such as:

(i) The nature of the company’s business;

(ii) The economic conditions of the country;

(iii) Other political and economic factors (e.g., possibility of nationalization, excise duty on goods produced, etc.);

(iv) The demand and supply of shares;

(v) Proportion of liabilities and capital;

(vi) Rate of proposed dividend and past profit of the company;

(vii) Yield of other related shares of the Stock Exchange.