Take shareholders' equity and divide that by the number of shares outstanding and you will have book value per share. Find the price-to-book-ratio by then dividing the offered price of the stock by the book value per share. The lower this number, the greater the value of the stock at that price.Does preferred stock cost more than common stock?
In theory at least, preferred stock may be seen as more valuable than common stock as it has a greater likelihood of paying a dividend and offers a greater deal of security if the company folds. It is also possible to refer to the cost of preferred stock in more general terms.How are prices determined in stock market?
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).Can you buy partial shares of a stock?
Buying partial shares of stock wasn't really an option. Times have changed. A number of companies allow 21st century investors to bypass their investment brokers altogether by purchasing stock direct. Such direct stock purchase plans usually involve making a dollar-amount investment, rather than purchasing a set number of shares.