0
It is discrete because if it did have decimals, lots of money would be lost. For example, if you have a stock at $20.36, and you buy 100.2 shares, the value of those shares is $2040.6828. If over a period of time, the stock goes up $2, it it will be at $22.36. This makes the value of shares $2240.472. Basically, you have earned $199.7892. But now what do you do with the .7892? If you decide to round up to .79, but a thousand people are selling their 100.2 shares, then they are owed a total of $.8. If this happens every day over a year, they are owed $29.2. If every stock did that then the extra amount owed due to the rounding would be massive.
Looking the other way, if you round down every time to .78, then each person holding 100.2 shares will lose $.0092. Again if there are 1000 people, collectively they will lose $9.2. And over a year, that is $3358 that just disappears. Because you can neither round up or down (because it will result in disaster) the amount of shares held by the shareholders must be discrete.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is the average time a share of stock is held?
It depends, but the average is usually between 20 to 30 seconds.
What percentage of wealth is held by women?
It doesn't matter what percentage of wealth women hold, because they hold 100% of what really matters.
Functions of data warehouse?
A data warehouse functions as a repository for all the data held by an organisation. The main functions are to reduce cost of data storage, facilitate data mining, and facilitate ability to back up data at an organisational level.
If you had your period two weeks ago then you bleed two weeks later does that mean your pregnant?
Since you have said that you bled two weeks after your period, you are probably not pregnant. If you are concerned about this, please see your primary care physician or your gynecologist, as something else could be the cause. During early years of menstruation, things might not be on schedule yet. See your doctor for more information and advice. This response has been given by a medical professional, but not a physician. Although this response has been checked for accuracy and has been researched, any advice given here does not take the place of your primary care provider. In an emergency, please dial 911 or your local emergency number. This response is provided under the terms and disclaimers of WikiAnswers and the author of this answer cannot be held liable for any misguided attempts to follow this advice without the observation or guidance of a licensed physician.
What is the Difference between allocation and distribution?
The difference is in the delivery of the items being apportioned. When a portion is allocated to a recipient, it is virtually reserved for that recipient - but not necessarily delivered to them and may still be held by the allocator. If the portion is distributed, then the recipient has actually received the portion that was allocated to them. This is the difference as determined under U.S. federal tax laws, as I understand it. It should be remembered that an allocation or distribution can be in both directions, i.e. even as assets can be apportioned to recipients, so debts or liabilities can be apportioned to those deemed responsible for them.
What happens in a publicly held corporation?
a large number of stockholders can buy an sell stock
Who is Microsoft owner?
Microsoft is a publicly held company so the stockholders own. Some people, like Bill Gates, own millions of shares of the company.
Owned by a limited number of stockholders?
A close corporation is owned by a relatively small number of stockholders. Also called a privately held company, stock is not offered for sale to the general public.
What do you mean by number of outstanding shares?
Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!
How do you calculate the Earnings per share using the number of shares authorized by company along with the number of shares still held by company?
yes i could
What do you mean by bonus share?
Free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares owned, it does not increase the total value. This is due to the fact that since the total number of shares increases, the ratio of number of shares held to number ofshares outstanding remains constant.
What is Difference between issued and outstanding shares?
Issued Shares: The number of shares that has ever been sold to and held by the shareholders of a company. Includes stock that has been repurchased by the company. Does NOT include shares that have been retired.Outstanding Shares: Stock currently held by investors. Does NOT include stock that has been repurchased by the company..If either no shares have ever been repurchased or if all repurchased shares have been retired then Outstanding shares = Issued Shares.
How many shareholders does a company have?
It can be any number. Usually 51% of a company's shares is held by its owners/promoters the remaining 49% can be held by the public. so ideally speaking you can have upto 50 share holders in a company that has 100 shares. 51 held by the owner and the remaining 49 held by 49 different people.
Is there a limit to the number of shares a investor can own?
No, there is no limit to the number of shares an investor can own. However, certain regulations, such as antitrust laws, may come into play if an individual or entity acquires a significant percentage of a company's shares. Additionally, some companies may have bylaws or policies that restrict the ownership concentration of shares.
What is share premium reserve?
Share premium occurs when a company sells its shares at a price higher than face value, meaning it earned more money than the share is stated to be worth. This excess money is held in reserve in a share premium account, and it can be used to pay equity related expenses, such as underwriting, or to issue bonus shares to stockholders.
What is the total number of common stock shares of Lehman Brothers outstanding?
Hello, I would like to ask what is the total number of Lehman Brothers total shares outstanding. The reason of this question is if it is worth it to participate in the Lehman Brothers settlement when I held only 27 shares of common stock during the class action period.
What is a No Dividend Counterfoil?
A payment to your account from shares held by you.
