Showing posts with label XYZ. Show all posts
Showing posts with label XYZ. Show all posts

Tuesday, August 25, 2015

How to Calculate Stock Averages


Add the total value of stock purchased on each stock ticket. This should be on your statement or ticket. If you don't have this, take the number of shares and multiply this to the price paid per share. For example, if you purchased 100 shares of XYZ stock at $15 per share, this would be $1500.
Add the total value of each purchase together. Assume you bought XYZ three times, each time purchasing 100 shares. You paid the following prices: $15, $10, $12. You would then have spent: $1500 + $1000 + $1200 = $3700.
Add the total number of shares you have purchased. For example if you bought 100 shares of XYZ stock three times, then you would have 300 shares total.
Divide the total dollar value spent by the total shares purchased: $3700/300 = $12.33/ per share.
You might need to consider the cost per transaction paid. If you are paying a commission for buying the stock, then add the commission price into the total amount spent before dividing it by the total number of shares. If you want to know your break-even price, add the estimated sales commission to the total dollar value as well. For example, if you spent $8 for each of the three trades, then: $3700 + $8 + $8 + $8 = $3724 for the total purchase price. If you will spend $8 on the sale, then your total would be $3732 / 300 shares = $12.44 for your break-even price.

Friday, August 21, 2015

How to Take Over a Company by Buying Its Stock


Obtain the company's most recent quarterly balance sheet. The company's ownership structure is outlined in the section of the balance sheet entitled stockholders' equity.
Determine the number of shares outstanding. This is a line item in stockholders' equity. It tells you how many units of stocks have been issued. For instance, let's say that company XYZ has 100,000 shares outstanding.
Calculate the number of shares you need to purchase in order to take over the company. Multiply the total number of shares outstanding by .51. In this example the answer is .51 multiplied by 100,000, or 51,000.
Calculate the amount of capital you need to raise in order to purchase a 51 percent stake in the company. Determine the current price of company stock by contacting your stockbroker, the company's investor relations department or by doing your own research. Let's say the current share price is $10. In this example, the total capital needed in order to purchase a 51 percent stake in the company is 51,000 multiplied by $10, or $510,000.
Secure capital. If you don't have the full stake, you can request a bank loan or solicit the help of other investors. As leverage or collateral, look at the current cash position of the company -- the first line item on the balance sheet. This amount can be used to pay off any loans once the company is taken over.
Purchase a 51 percent stake in the company. Contact your stockbroker to do this. She will execute the order in waves in order to minimize the increase in stock price as the stock is being purchased.