6-1 Discussion: Understanding Pricing of a Stock

You may have seen how financial news media provides real-time financial market reporting. They often produce stock-market news feeds for traders. These news feeds include a stock chart. The stock chart may include different filters that allow you to see how the stock is performing today or has performed over one or more years.

Many factors can affect pricing. Those factors can't be controlled or accurately predicted. The approaches used to value stocks (determine what the stock is truly worth) are usually theoretical. You should consider what drives stock prices and why.

For this discussion, first go to Mergent Online. Find the pricing chart under the Company Details tab, and then click Pricing Summary for your selected company Walt Disney. This is the company you have selected for your Project Two assignment. Filter the time period to one year.

• Discuss how the stock for your company is trending. Explain why the stock is in either an uptrend or downtrend.
• Convince your peers either to invest in your chosen company or not invest in the company. Explain your reason why.