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Finance for Business Decisions - Essay Example

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Finance for Business Decisions

Figure value depicts the trend of share price of the said bank. Westpac Bank share prices from 2008 to 2013 The figure clearly reveals some certain trends in the share process of this bank. From the figure it can be derived that there has been continuous ups and downs in the share value of this bank; which is quite normal and does not bother investors much. In the seventh month of 2008; the share price was below $20 i.e. $ 18.68; but during the year share value reached to the maximum of $ 25.05 but at the year end the price was somewhere around $ 16.63. The average price of share in this year was $ 20.6505. Moving further the year 2008-09 showed again a mixed trend where the highest value of share was around $ 27.23. However share price figure at the end of year is $ 28.95; showing a decreasing trend followed by an increasing trend. Year by Year Analysis Year by Year Share price of Westpac Bank A simple picture above shows the year by year trend in the share price of Westpac Bank. And it can be easily derived from the chart that in the year one the price was slightly above than $20 but in the year 2013 the price ended at around $30. There is a significant increase in the price of around $ 10; but again a thorough analysis is required to evaluate the price increase in the shares. However it is an increasing trend and very encouraging for any investor. ...
From the organization available the best option for comparison of Westpac Bank can only be Commonwealth Bank of Australia. Many justifications could be presented for this option; for instance both organizations are financial institutions, both of the banks operate in Australia, both of these banks are listed on the same stock markets and both of these banks are subjected to same macro-economic conditions. Commonwealth Bank of Australia Same like Westpac Bank it is essential here to get a pictorial view of the trends of the share prices of Commonwealth Bank of Australia so that a comprehensive comparison could be carried out for both of the banks. Share Prices Trend of Commonwealth Bank of Australia The picture clearly states that the share price trend of the bank is in an increasing trend. The share prices were lowest in the year 2008 at around $21 but then the bank managed either to increase its share price or at least maintain its share prices. There are minor shrinks in the share process but these seem to be quite insignificant. And hence it is right to say that Commonwealth bank of Australia has brilliantly managed to live upto the expectations of its investors. Yearly Trends Same as we did for Westpac Bank it will be useful here too; to have a year by year analysis of the share prices of this bank. The trend can be shown in the picture below. Year by Year Analysis of Share Price of CBA From the picture above it is quite clear that the performance of Commonwealth Bank is quite good since hardly any decreasing trends could be found in this chart. From the previous year share prices have either increased significantly or at least have been static there is as such no decreasing trend here. Most importantly4 the ...Show more

Summary

Portfolio Management Name Module Date Portfolio Management Westpac Bank; one of the oldest banks of the world; no doubt is a tempting company to invest. The history of bank lures many investors to blindly put their money in the stocks of this prestigious bank…
Author : opalgreenfelder
Finance for Business Decisions essay example
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