What is market share?
Q: What is market share?
A: Market share is the portion of a targeted consumer base that a company actually reaches for a particular service or product. It can be shown as either the amount of money a company brings in from its consumers, or the amount of products/services sold by a company divided by the total volume sold to all consumers in that market.
Q: Why is increasing market share important in business?
A: Increasing market share is one of the most important objectives in business because it allows companies to reach more customers and increase their profits. It also removes the effects of macroenvironmental variables such as changes in tax policy or economic downturns.
Q: How can companies increase their market share?
A: Companies can increase their market share by advertising more, offering better customer service, and providing quality products at competitive prices. They may also need to commission market research to estimate total market size and their own current market share.
Q: What are shares?
A: Shares are units of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. By owning shares you become an owner of the company, which entitles you to receive dividends plus capital gains when selling them on the stock exchange. However, there is also risk involved if you sell your shares at a price below what you bought them for.
Q: How does news affect stock prices?
A: Stock prices are affected by all forms of company and market news since they reflect what investors think about the stock rather than its actual worth. Publicly traded companies must report quarterly on their financial status and earnings which can influence investor opinions and therefore stock prices as well.
Q: What other factors influence stock prices? A: Other factors that influence stock prices include general investor opinions, economic conditions such as inflation rates or interest rates, political events such as elections or trade agreements, industry-specific developments such as new technologies or regulations, and even natural disasters like hurricanes or earthquakes which could disrupt production or supply chains.
