Oditor, Vol. III, No. 02/2017

Radovan Damnjanović[1]

Date received: 13.07.2017.
Date accepted: 24.07.2017.
UDK: 338.57:336.763
JEL: C19, E39


In theory, the stock price is correlated with the movement of the price of goods on the market. In inflationary conditions or circumstances that inflation predicts growing demand for the shares, as the shares are considered to be protected from inflation because they believe that stock prices and dividends following the growth in commodity prices. Thus, inflation affects the increase in the share price. A similar movement and the impact of exchange rate of the domestic currency. Actions are the best known and most significant owner of the capital market financial instrument. Possession of action means having part ownership of the company. The value of shares when its broadcast called face value. It serves to express its owner’s proportionate share of the total capital and is the only accounting category. The market value of stocks is almost always different from
the nominal value and the book value of the market value of the stock. The value of shares in the company on the market (market value of the shares) changes daily trading on the stock exchange and the business depends on the fate of the company, current business and prospects that it has, but also by market factors on which the company has no influence.
Price action is not only a simple level of prices in the financial markets, but also indicates the quality and efficiency of business management company that issued the shares. Otherwise, mass actions represent securities issued in a number of several thousand copies, in proportion to the capital of the company, ie, certain enterprises. Since stock prices virtually talking about business quality, effectiveness and efficient management of
the company, it is clear that this is a complex parameter. For investment decisions is developed larger number of mathematical models. The model has two parts, the function of the criteria and system limitations. Function criterion represents a special way, the aim sought to be achieved by solving problems. Since it expresses the quality of the individual solutions, it serves as a measure of comparison in choosing the best solution. The system
consists of a quantitative restriction limiting factors expressed in the functioning of the economic system. These restrictions are a result of limited resources or other characteristics of the system. The system limits determine the scope of permissible solutions rešavanog problems. Mathematical models represent an important and useful tool in determining the price of shares in the context of investment decisions.

Key words: action, dividend, market value, discounted, cash flow, inflation, price

[1] Radovan Damnjanović Ph.D., Assistant Professor, University of Defence, Military Academy, Pavla Jurišića Šturma street no. 33, Belgrade, Serbia, Phone: +381 60 132 50 60, E-mail: radovandamnjan@gmail.com