1 Comment
  1. Naresh 2 years ago

    Please find below the response to your queries-

    Question 1 :: Does stock price affect the monetary aspects of the company?
    The company gets the money during IPO and price changes of a stock affect only the buyers and sellers of the stock. so, the stock price may not impact the performance of the company, but the performance of the company may influence the stock price.
    Hence the stock price is driven by company performance and the company does not affect by the buying and selling the shares. However, the share price may have an indirect impact on the company performance, for example, a declining share price will make it hard to get a loan, can’t attract further investors, difficult to build partnerships, goodwill etc…

    Question 2 :: what is open interest long winding= short covering=
    Long unwinding is a situation in which traders starts selling the security which means they have started squaring off their open long position in the market. If long positions are sold off, the price will decrease and open interest will also decrease
    Short covering is closing out a short position by buying back shares that were initially borrowed to sell.

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