How Stock Market Prices Are Determined

How Stock Market Prices Are Determined At a very basic level, economists know that stock prices are determined by the supply of and demand for them, and stock prices adjust to keep supply and demand in balance (or equilibrium).  At a deeper level, however, stock prices are set by a combination of factors that no analyst can consistently understand or predict.  A number of economic models assert that stock prices  reflect the long-term earning potential of companies (and, more specifically, the projected growth path of stock dividends). Investors are attracted to stocks of companies they expect will earn substantial profits in the future; because many people wish to buy stocks of such companies, prices of these stocks tend to rise. On the other hand, investors are reluctant to purchase stocks of companies that face bleak earnings prospects; because fewer people wish to buy and more wish to sell these stocks, prices fall. When deciding whether to purchase or sell stocks, investors consider the general business climate and outlook, the financial condition and prospects of the individual companies in which they are considering investing, and whether stock prices relative to earnings already are above or below traditional norms. Interest rate trends also influence stock prices significantly. Rising interest rates tend to depress stock prices - partly because they can foreshadow a general slowdown in economic activity and corporate profits, and partly because they lure investors out of the stock market and into new issues of interest-bearing investments (i.e. bonds of both the corporate and Treasury varieties). Falling rates, conversely, often lead to higher stock prices, both because they suggest easier borrowing and faster growth and because they make new interest-paying investments less attractive to investors. Other Factors That Determine Prices A number of other factors complicate matters, however. For one thing, investors generally buy stocks according to their expectations about the unpredictable future, not according to current earnings. Expectations can be influenced by a variety of factors, many of them not necessarily rational or justified. As a result, the short-term connection between prices and earnings can be tenuous. Momentum also can distort stock prices. Rising prices typically woo more buyers into the market, and the increased demand, in turn, drives prices higher still. Speculators often add to this upward pressure by purchasing shares in the expectation they will be able to sell them later to other buyers at even higher prices. Analysts describe a continuous rise in stock prices as a bull market. When speculative fever can no longer be sustained, prices start to fall. If enough investors become worried about falling prices, they may rush to sell their shares, adding to downward momentum. This is called a bear market. This article is adapted from the book Outline of the U.S. Economy by Conte and Carr and has been adapted with permission from the U.S. Department of State.

Outkasts-Aquemini critique essays

Outkast's-Aquemini critique essays It is not typical that hip hop music is viewed to be a form of art. It has received a great deal of negative publicity since becoming mainstream in the early to mid 1980s. It is believed, by many, that the lyrical content of this type of music deals with only guns, alcohol, sex, violence, and crime. It is understandable for them to have these beliefs, because there was a period of time when that was true. Though there are still the artists whose lyrics say very little; recently, hip hop has become a form of expression with deeper meaning. It is my opinion that this type of rap has a large amount of artistic value. A song which blends rhythmically, significant lyrics and a beat that sets the mood, should certainly be considered a work of art. The group that I believe is most successful in accomplishing this feat is Outkast. Outkast is the duo of Andre Benjamin and Antwan Patton, more commonly know as Andre 3000 and Big Boi. The work I have chosen to critique is titled Aquemini. It is the fifth track off of their third album which is also titled Aquemini. The word Aquemini is the combination of Aquarius and Gemini; Big Boi being the Aquarius and Andre 3000 the Gemini. With this paper I am including lyrics printed off of the internet and a copy of this song. Please excuse the obscenities used in the songs. Aquemini starts with the chorus which leads to the beginning of the relaxing and slow tempo beat. The meaning of the chorus is summed up by the lines: nothing is for sure, nothing lasts forever. In the first verse Big Boi says, we prayed together through hard times and swung hard when it was fitting, but now we tappin the brakes from all them corners that we be bending in Volkswagons and Bonnevilles, Chevrolets and Coupe De Villes. Big Boi is talking about their hard times together; which I feel refers to their growing up in a poor neighborhood of downtown Atlanta. ...

High Bypass Gas Turbine Engine Coursework Example | Topics and Well Written Essays - 2000 words

High Bypass Gas Turbine Engine - Coursework Example Application of Newton’s First Law related to thrust: # If thrust and Drag are equal, the aircraft maintains a constant speed. # If thrust is increased, the speed of aircraft increases. Since drag is proportional to speed, drag also increases till it equals thrust. When drag again equals thrust, the aircraft travels at constant higher speed. Application of Newton’s Second Law related to mass flow and exit velocity: Force Mass * Acceleration F ma F=kma When SI system is used,the basic unit of force is the Newton, which is the force that will accelerate unit mass of 1 kilogram at a rate of 1 metre per second per second. Under these conditions, the constant k is unity. Therefore, F=ma F=ma=m di/dt=(m/ft) dV=d (mV)/dt =mass flow rate times change in velocity =(mv)dot Where â€Å"m dot†=Mass flow rate is the amount of mass moving through a given plane over a given period of time. Mass flow rate=r * V * A where r is the density and V is the velocity of the fluid passing through area A. This is denoted as m dot (m with a little dot over the top) m dot= r * V * A If we denote exit of the turbojet by ‘e’ and free stream by ‘0’, then we get, F= (m dot*V)e-(m dot *V)0 Thus by maintaining the exit velocity at much greater values than the velocity at intake, high thrust can be produced in turbojet engines (High Exit Velocity). Application of Newton’s Third Law related to thrust: Thrust is the reaction force developed in the forward direction by accelerating a mass of fluid or gas backwards to the rear of the engine. The turboprop propulsion system consists of a core engine and a propeller. The general principles in Application of Newton’s First Law and Third Law in Turboprop engines are the same as given in Turbojet engine. Application of Newton’s Second Law related to mass flow and exit velocity in Turbo Prop: The general thrust equation is F= (m dot*V)e-(m dot *V)0 This means that if the exit velocity is m aintained at a higher value than free stream velocity, and simultaneously, the engine flow rate (m dot) is kept as high as possible, the high engine flow will produce a high thrust in a turboprop engine. Even though a large amount of air is ingested, the change in velocity is very minimal between the intake and the exit so that the exit velocity is at a low value (Low exit velocity). Due to the large value of m dot, a high thrust is developed. Total Thrust= Thrust of Propeller Thrust of Core If we denote the free stream conditions by â€Å"0†, the propeller exit conditions by â€Å"1†, core exit conditions by â€Å"e† and core entrance conditions by â€Å"c†, then from the basic thrust equation we get: F=(m dot)0 * V1 – (m dot)0 * V0 + (m dot)e * Ve – (m dot)c * V1 In Turboprop engine, the mass flow rate through the propeller is much greater than that of core engine(High mass flow ). The mass flow rate entering the core is almost equal to th e mass flow rate exiting the core. The exit velocity from the core is almost the same as inlet velocity into the core(Low exit velocity). Hence the thrust equation can be rounded off to get: Thrust F=(m dot)0 * (V1-V0) + (m dot)e * (Ve-V1) High Bypass Gas Turbine Engine: The 5 basic modules- Along with a Detailed Description of operation of each. Inlet Components and Purpose: The intake also called the inlet serves three purposes, namely (1) recovering as much of the total pressure of the free air stream required for combustion, from free-stream conditions to the conditions and deliver this pressure to the entrance of fan or compressor.