Do you see any similarities in the movement of competitors stocks during the same period?

Examination of internal and external factors is used for an analysis of a common stock performance. Show more Examination of internal and external factors is used for an analysis of a common stock performance. Instructions Choose a common stock that has experienced considerable price fluctuations in the past few years. Here are several examples (but there are many others): IBM J.P. Morgan Chase AT&T Amazon.com Oxford Health Care and Apple Computer. Find the symbol for the stock (for example J.P. Morgan Chase is JPM) and the exchange on which it is traded (JPM is traded on the NYSE). Find the historical ups and down of your chosen stock going back no more than ten years. You can find this information at a number of well known sites on the web. Do a little research to find these sites. Find a period of several months or even a year when there have been major price fluctuations in the stock. Research what happened during that time period that might have contributed to the fluctuation. A place to begin is with the Wall Street Journal or on the business pages of a national newspaper such as the New York Times or the Washington Post. Perhaps a this day in history web page would provide some information. Write a short analysis that links changes in stock price to internal and external factors. These factors are detailed in the document attached to this assignment. As you analyze the data be aware that it is sometimes difficult to know why a stock price fluctuates Follow-Up Questions (please respond to these as well): Do you see any similarities in the movement of competitors stocks during the same period? For example did the stocks move up or down at about the same time? If so do you think the stocks were affected by the same factors? Explain your thinking. NOTE: overlaying graphs of the stock you selected and competitors stocks during the same period is a good way to visualize this. Based on your analysis did internal or external factors have the greater impact on stock price? Which factors had the more long-lasting effect? Which factors had the shorter effect? Why do you think it is so hard to predict changes in stock price on a day-to-day basis? Incorporate in-text citations. lllllllll Factors that Influence Stock Prices Stock prices are affected by many variables. Understanding these variables and keeping a close watch on events are important to every trader and analyst. Business fundamentals play a huge role but so do elements of human psychology (fear greed and investor perception). Internal factors relate to the company itself. Examples: an announcement of poor or favorable earnings earnings that are more or less than expected earnings dividends major layoffs labor problems new products management issues accounting errors scandals mergers External factors relate to world or national events. Examples: political upheaval or war international currency crisis weather conditions that affect sales the Feds adjustments of interest rates employment figures that were higher or lower than expected Additionally industry information may impact an individual stock. The fortunes of an industry as a whole tend to affect individual prices. Bad news however about one company may be beneficial to another company. By analyzing these factors you will often learn a lot about why a stock did well or why it performed poorly. Being aware of these influences will help you anticipate future stock movements. Show less

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Approximately 250 words