Pricing and valuation of shares

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share price as the price of any product or service, by and large depends on the supply and demand for this resource at a given time.Possibility to buy a particular stock depends on what organizational and legal form of established joint-stock company to issue shares.

If it is a closed joint-stock company, the owner of the shares may be strictly defined circle of persons - the founders of the company.When you create a company shares are distributed among the founders at a price not lower than the nominal value specified in the memorandum and articles of association.Buy shares of closed joint stock company, not being a shareholder, it is possible only if their selling shareholder, and the other participants (in some cases the company itself) abandoned their acquisition at the price at which they are offered.Own shares assessment in this case can be made on the basis of data on net assets.

net assets represent the difference between the assets of the Company (which assets include the first and second section of the balance sheet with the exception of the costs of purchase of shares from shareholders, outstanding contributions to the share capital and the inclusion of deferred tax assets) and liabilities.The liabilities include long-term liabilities of all kinds, short-term credit commitments and other obligations of short-term plan (showing the amount of provisions for contingent liabilities), debt to creditors and the founders of income payment, allowance for future expenses, including deferred tax liabilities.

resulting net asset value divided by the number of shares thus calculated - how much are the shares.Information on the net assets is disclosed in the annual financial statements or can be calculated based on quarterly balance sheets.

Valuation of shares based on the net assets is suitable for the shares Open Joint Stock Company (JSC) that are not traded on the stock exchange.It is part of fundamental analysis, which also includes the analysis of the economic situation, analyze the state of the industry and the company itself, whose shares are planned to purchase.If the stock traded on an exchange, it may be above the price as the net asset value per share and below.For example, Gazprom's shares as of the spring of 2013 are two times cheaper than their cost based on an assessment of the net assets.This means that there was no market demand for these shares at a higher price.

If you own valuation of shares is a potential owner of the securities difficulty (this activity requires extensive knowledge), the decision about which stocks to buy, you can take based on the analyzes offered by major banks and investment companies.It is necessary to read a few reviews and make a choice, it is very important not to put all the money in stocks, as well as all the available funds.

Valuation of shares when making a decision about their purchase on the stock exchange must take account of energy prices on world markets, asRussia's economy is extremely dependent on this factor.If prices fall significantly, it is better to wait with the purchase.When you purchase securities of other mining companies also should take into account changes in the cost of raw materials produced in the Russian and global markets.Due to the fact that the Russian stock market is heavily dependent on foreign funds, you need to pay attention to the movement of the index on the Tokyo, London, New York and other stock exchanges.Stock prices are sometimes rising in anticipation of the record, if you expect tangible dividends paid or if the market has a big buyer interested in a particular enterprise.

transactions in the securities market require a certain educational background, so if you want to get a stable and high returns in this field, it is necessary to examine the fundamental and technical analysis, as well as to gain some experience.