What is the significance of company A's stock price on December 10th, 2005?

  • Thread starter Thread starter Numnum
  • Start date Start date
  • Tags Tags
    Continuity
Click For Summary

Homework Help Overview

The discussion revolves around the significance of company A's stock price being $25 per share on December 10th, 2005, in relation to prices on other specified dates. The subject area includes stock price behavior and the implications of continuous price changes over time.

Discussion Character

  • Exploratory, Assumption checking, Conceptual clarification

Approaches and Questions Raised

  • Participants explore the implications of the stock price being $25 on a specific date, questioning whether it represents a minimum price and considering the behavior of prices on surrounding dates. There is discussion about the nature of this minimum (local vs. global) and the possibility of other prices occurring multiple times.

Discussion Status

The discussion is ongoing, with participants raising questions about the nature of the stock price changes and exploring different interpretations of the data provided. Some guidance has been offered regarding the implications of continuous price changes and the potential for multiple occurrences of certain prices.

Contextual Notes

Participants are working with limited information regarding the stock price history and are considering the implications of the given prices on specific dates. There is an emphasis on the assumption of continuous price changes between the noted dates.

Numnum
Messages
19
Reaction score
0

Homework Statement


You know that the only time company A's stocks were traded for $25 a share was on December 10th, 2005. You also know that on June 3rd of 2001 the price was $41 a share and on September 17th of 2010 it was $34. Assuming that stock prices change continuously, what conclusion can you make about company A's stock price on any other day?


Homework Equations





The Attempt at a Solution


The stock doesn't seem to change much everyday. Maybe there's never a price spike?
 
Physics news on Phys.org
You're told that the only time the company's stock price was at $25/share was December 10th, 2005. You are then given prices on two more days, one before Dec 10, 2005, and one after. Are those prices higher or lower than $25. If the prices change have to change continuously between those three dates, what does knowing that Dec 10, 2005 was the only day the price was $25 tell you?
 
Mute said:
You're told that the only time the company's stock price was at $25/share was December 10th, 2005. You are then given prices on two more days, one before Dec 10, 2005, and one after. Are those prices higher or lower than $25. If the prices change have to change continuously between those three dates, what does knowing that Dec 10, 2005 was the only day the price was $25 tell you?

$25 was the minimum? And two days other than Dec 10 can have the same stock price?
 
Numnum said:
$25 was the minimum? And two days other than Dec 10 can have the same stock price?

Yes - what kind of minimum is it (local/global)? (Assuming the price has yet to dip below $25 at some point in the future). It's certainly true that it's possible that prices of $34 and $41 can occur more than once. In fact, you know that it has to cross one of those prices at least twice - which one.

I'm not sure if the question wants you to draw any other conclusions, but those were the ones that occurred to me.
 

Similar threads

News Psssttt, the deficit's shrinking
  • · Replies 19 ·
Replies
19
Views
4K
News Bush Honest & Trustworthy Until How Many Lies?
  • · Replies 65 ·
3
Replies
65
Views
12K
News Bush Administration: My Indictment
  • · Replies 3 ·
Replies
3
Views
4K