Our Archives

Call 09159097300, or 09067754232 for any enquiries.

Project Topic:

AN INVESTIGATION INTO THE RELATIONSHIP BETWEEN COMMON STOCK PRICES AND INFLATION IN NIGERIA

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 65 ::   Attributes: Secondary data, Data Analysis,Abstract ::   3,885 people found this useful

Project Body:

The article on this topic (an investigation into the relationship between common stock prices and inflation in Nigeria) is an extract from literature review of the project material. The complete project work would be made available when you subscribe for the full material.

 

CHAPTER TWO

LITERATURE REVIEW

What is common stock?

 Common stock as it is called by the America investor is what is normally referred to as ordinary share or Equity.

 Ordinary share supply the basic risk capital of the company represented by shares (denominated) with a nominal value for instance in Nigeria of generally between 50k and N1.

 The nominal value can be different from the market value and the market value of a common stock /share indicates the current worth of the share at any particular time.

 This market value in practical life is changing every day in the stock market.

 A lot of model developed in the valuation of common stock prices like the dividend valuation model which is commonly used to value stock indicates that the prices of any share of common stock will be determine by three variable, the level and growth rate of dividend, the risk less rate of interest and risk premium, the formula for the model is represented as.

 PDV = Σ Do (1+gt)

 (1+rt +pt)t 

 Where

 PDV = present discount value of the expected dividend.

 Do = Level of current dividend

 Gt = The expected growth rate of dividend at that time

 Rt = The riskless rate 

 Pt = Premium

 T = Time

 Apart from the use of models in the valuation of common stock, econometric techniques have also been applied with a degree of success in studies of the determinants of individual common stock prices, relatively little attention had been given to the use of these techniques by economist in forecasting short run movement in aggregate indices of stock prices.

 In fact most economist contend changes in stock prices are not amenable to economic analysis.

 It is apparently believed that equity prices are determined by chance them reason, the oldest theory and the most valid will be analyzed later in the study, purporting to explain changes in aggregate monetary demand relies on changes in liquidity or the stock of money as the independent or causal factor.

 In fact, changes in the stock of money or liquidity influences the willingness of consumers and investors to exchanges money for goods and asset, there should be a demonstrable relation between monetary changes on one hand and business and stock prices on the other.

 

DETERMINATION OF COMMON STOCK PRICES

Prices of common stock are values attached to ordinary share and the value of any asset is a function of the income derivable from the asset, pricing of commons stock is one of the major determining factors that influences investor in their choice of which types of security to buy and it is after the prices of a security is known that it relative in terms of return on the investment could be determined.

 Share prices valuation is founded on the proposition that there exist certain relevant variables and relationship that can be isolated and used in a valuation model. Many of these variable can be quantified and used in mathematical models of share price valuation. While other are simply qualitative by nature and useful in non-quantitative descriptive valuation model, while it is correct to say that there exist in theory of security value.   

 This theory is represented by wide variety if quantitative and qualitative valuation models.

Qualitative models assume that investor behaviours can be explained in terms of certain


Get The Complete Project »

Project Department:

MORE ECONOMICS FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED ECONOMICS FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA CHAPTER ONE

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   11983 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study Government Expenditure no doubt is an important instrument for a government to control the economy of a nation. Economists have been well aware...Continue reading »

IMPACT OF MACROECONOMICS VARIABLES ON FIRMS’ PERFORMANCE IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 59 ::   Attributes: Secondary data, Data Analysis, Abstract  ::   8360 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study Every company operates within the internal and external environments of business. The internal environments are within a firm such that the pre...Continue reading »

IMPLICATION OF TREASURY SINGLE ACCOUNT ON BANKING SECTOR OF NIGERIA AND THE ECONOMY AS A WHOLE

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   14137 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Treasury Single Account is a public accounting system under which all government revenue, receipts and income and collected into one single acco...Continue reading »

TAXATION AS A TOOL FOR ECONOMIC DEVELOPMENT OF NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   14423 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Nigeria as a nation has the vision of becoming one among the world’s 20 largest economies in the year 2020; this obviously is the brain beh...Continue reading »

THE IMPACT OF COMPANY INCOME TAX REVENUE ON THE DEVELOPING ECONOMIES: THE NIGERIA EXPERIENCE

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5891 engagements

The article on this topic (impact of company income tax revenue on the developing economies) is an extract from literature review of the project material. The complete project work would be made avail...Continue reading »

THE IMPACT OF TAX ON GOVERNMENT CAPITAL EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 65 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   12205 engagements

The article on this topic (impact of tax on government capital expenditure and economic growth in Nigeria) is an extract from literature review of the project material. The complete project work would...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Jayone from FPA said " I had a wonderful experience using UniProjectMaterials,though they did not deliver the material on time, but the content had good quality. I recommend UniProjectMaterials for any project research work.".
    Rating: Very Good
  • 2. Mugisha R from B.U, UGANDA said "Wow, this is great, your materials has helped me alot. Many blessings. I will inform my friends. Thanks. ".
    Rating: Very Good
  • 3. Nwachukwu Ruth Chinyerr from Michael okpara university of Agriculture,umudike said "I really appreciate this. Materials like this are good guides to writing a researchable project.".
    Rating: Good
  • 4. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 5. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 6. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good

Paper Information

Format:MS word
Chapter:1-5
Pages:65
Attribute:Secondary data, Data Analysis,Abstract
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives