QUESTION
If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met?
owth with the expectations to benefit from the capital appreciation.The investor can never be cent percent certain of his expectations being met because the markets are highly volatile. However he can be a little certain about his expectations being met based on the past analysis of the company, technical analysis and by using risk adjusted discount rates to calculate the present values of the expected future cash flows expected from the share in order to incorporate the risk in the evaluation process.
ANSWER:
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