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Volatility of Share Price in NSE on Indian Stock Market-A Case Study of Ramco Cement Company-An Empirical Study

Author : Ms. M Tejaswee, Dr. RS Ch Murthy Chodisetty and G Vineesh Kumar

Abstract :

For a long time, I placed a high value on the Plumley Rubber Company, a family firm that was started by Mr. Harold Plumley. The firm was owned by Mr. Plumley and his four sons, who were all employees, and he contacted me one day in the late 1980s to ask for my assistance in drafting a formal dividend policy. Each shareholder of the same class (common, preferred, etc.) is to receive an equal amount of dividends, the value of which is decided per share. The money can't be paid unless the board gives its approval. Dividends are a mechanism for investors to get financial benefits from their assets. The shareholder is eligible for dividend as long as their money is invested in the company and the company is making profits out of its business. This paper explains about Share price Volatility of Ramco Cement before and after announcement using Arch Model.

Keywords :

Share price volatility, dividend announcement, arch & garch models