Financial and Stocks Fluctuation
Company is always depending on funds in order to support its operations and maintain its survivalibility in this tight business competition. One way to obtain the funds is to attract funds from outside the company. On way to obtained outside funds is from the stock market, namely a market mechanism that meets the parties who have excess or surplus funds with those parties who have lack of funds.
From the stock market, the company should strive so that the investors willing to infuse their capital. In other words, the company should be able to convince the investors that they will get return from their investment. Thus the stock market is become a tool for the company to obtain funding and provide opportunities to the investors to obtain reward (return) from their investment.
The main objective of the investors is to obtain a reward (return) from their investment in form of dividends and in addition the capital gains, namely the difference between the stock market price with its nominal price. Furthermore, the objective of the company to received such investment is to obtain the expected results (expected return), although there is the possibility of risk.
Thus, for this fund collection matter, then the company is obliged to keep and maintain the company’s financial condition and give attention and maintain liquidity, laverage, the company’s prospects, profitability and the company’s performance.
November 8, 2010
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