Scientific-Methodical Approach to Forecasting Yield on Stocks, Taking into Account Investment Risks

Journal Title: Бізнес Інформ - Year 2015, Vol 12, Issue 0

Abstract

The article determines that forecasting yield on stock transactions should be understood as such that by investing some money in the shares of another enterprise, the new shareholder acquires the right to part of the joint stock company assets, in proportion to the purchased shares in the authorized capital. Additionally, with getting hold of common shares, the issuer expects to receive part of the profits of a joint-stock company in the form of dividends, if the results of the financial year are positive and a decision about the size and order of dividends payment has been made at the shareholders' general meeting. It is emphasized that possibility of receiving income is expected in the future, while the investment is being made at the present moment. As a result, using the postulate of «money today are more expensive than money tomorrow», the investor needs to mathematically calculate the economic efficiency of his investments. A calculation of settlement (real) value, based on the theory of simple and compound interests in the relevant section of financial mathematics, has been proposed; possibilities of adjustment with due regard to investment risks have been considered.

Authors and Affiliations

Natalia Rekova, Victoria Kozlova

Keywords

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  • EP ID EP122947
  • DOI -
  • Views 67
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How To Cite

Natalia Rekova, Victoria Kozlova (2015). Scientific-Methodical Approach to Forecasting Yield on Stocks, Taking into Account Investment Risks. Бізнес Інформ, 12(0), 288-292. https://europub.co.uk/articles/-A-122947