Thursday 6 December 2012

Fragility of Share Price

Share prices drive a Public Limited Company. A strong share price that is constantly rising, shows that a business is growing and it becomes more attractive to investors, because it shows that the business is becoming more profitable and therefore the investor will get a better return through a dividend. This share price is dependent on a couple of things such as the health of the market, competitors, confidence in the business, direction of the business, the ability to bring out new products and so on. Apple is richer than most countries. It has no debt and is globally recognized. It is the main innovator in the market place with everyone playing catch up. Apple had $35billion wiped off the value of its business due to a fall in the share price. This is mainly due to its competition in one of its markets using a different phone over an Apple product. If you are ever thinking of investing in shares or want a greater awareness of the corporate world, you should have a look at the Footsie, London Stock Exchange, Nasdaq or equivalent. Choose some businesses of interest and monitor their share prices. Collect articles on the news in that particular type of industry relevant to your chosen business and see what happens to the share price. By doing this, you will get to see the true value of the share prices and whether the share prices are high or low. I am sure Mr Buffet may buy more of these shares today as the price is lower than it has been for a while. Apple article.

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