Effects of Financial Market Variables on Stock Prices on the Example of the Market Rates of the Listed Companies: A Review of the Literature

Abstract

In the actual context of the economic globalization, the financing on the financial market has become a modern alternative for the financing from the monetary market, so that the main users of financial information will be the investors. The real growth of the activity of one company is best reflected by using the stock growth rates, as they reflect the best argument regarding the fact that the management at the level of the entity was efficient and credible for the future investors on the capital market. Through efficient management decisions, the activity within the entity was carried out through commercial profitability and return conditions and these aspects are seen as appropriate by the market, increasing its credibility in the respective entity.

Keywords

• stock exchange rates
• market capitalization
• per market capitalization coefficient
• price-to-sell-ratio indexes
• stock indicators