StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Assignment example - Stock Investment

Masters
Assignment
Business
Pages 16 (4016 words)
Download 1
The financial performance of a business entity is an essential factor in determining the profitability of a stock investment. This paper assesses the profitability of Ted Baker PLC's stock by performing an in-depth financial analysis. Profitability, gearing, and liquidity are assessed…

Extract of sample

In his article Strategies for Stock Selection, he put forward four factors to look at: markets; economic cycle; obvious risks; and company (How to Choose Stock 2006).
Foremost in his recommendations is buying stocks that an investor is not only acquainted with but knowledgeable in. Peter Lynch advises that an investor should buy the stock of a company whose products are purchased by him and his social circle. He should asses if this product will continue to become popular in the future. He cautioned investors that if they can't explain what a company is doing, they should not invest its stocks. In the process of knowing a company, it is imperative that an investor also looks at the current financial position of the company by looking at the different aspects of the business with the help of financial ratios. These ratios reflect not only reflect the financial situation of a business entity but also shows the company's strengths and weaknesses in terms of numbers. Aside from gaining a deep insight on the company's operation and current financial position, an investor should also look at the company's historical performance in terms of financial ratios and stock prices. To maximize the investment profitability, return of a stock should be compared with other stocks in the same industry (How to Choose Stock 2006).
This report is an analysis of the profitability of holding Ted Baker PLC's stocks as ...
Download paper
Not exactly what you need?

Related papers

Arguing about the risk of investment in a certain kind of stock.
Since stocks are considered as most volatile and risky investments, therefore, to make an investment into any stock requires considerable analysis and exploration of different factors which may have a direct or indirect impact on the stock prices. Since 2007, overall activity in the stock markets has been depressed due to different factors and currently the markets are suffering due to sovereign…
7 pages (1757 words)
Pension Investment Essay
Personal investment decisions are made in the context of wider economic, social, economic and policy. In addition, ethics and regulation are known to have a significant impact on the structure of distinct investment products and the nature of distinct investment plans and strategies. More so, personal investment decisions should be based on a number of factors outside an individual control such as…
6 pages (1506 words)
Stock Markets
Hypothesis being the Greek word for "assumption", the Efficient Markets Hypothesis therefore assumes that capital markets, of which the stock or equity market is one, is efficient. And what we mean when we say that a market is efficient is that buyers and sellers of stocks have all the relevant information they need to make an intelligent decision to either buy or sell stocks in companies at a…
6 pages (1506 words)
Stock Beta
If you are planning to invest in Amazon's stocks, using this simple beta formula will be a good starting place for you.…
2 pages (502 words)
Investment
It has often been said that some investment types such as unit trusts are more profitable as compared others such as open ended investment companies (Atrill & Elliot 2005). In this paper we critically review this assertion by looking at literature on the subject of different investment types. The paper begins by providing an overview on the various investment types and afterwards concentrates on…
13 pages (3263 words)
Portfolio Theory and Investment Analysis
More specifically, the trustees want to know the following: (1) The impacts of having a small number of stocks in the portfolio and concentrating the investment in large stocks. (2) The benefits of moving some of the investment to international securities. (3) How derivatives may be used to enhance returns and manage risk.…
8 pages (2008 words)