Question
Common stock is an equity investment that represents ownership in a corporate form of business. Each share represents a fractional ownership interest in the firm.
Common stock is an equity investment that represents ownership in a corporate form of business. Each share represents a fractional ownership interest in the firm. The key attribute of this investment security is that it enables investors to participate in the profits of the firm. As residual owners of the company, common stockholders are entitled to dividend income and a prorated share of the firms earnings after all other obligations of the firm have been met. They have no guarantee they will ever receive any return on their investment. As young investors, it is important for you to appreciate the stock market and its operations before investing.
You are required to visit the website of the organization assigned and the Jamaica Stock Exchange to ascertain information about the company.
a) Use the information gathered to prepare an overview of the organization to include its mission, vision, strategic objectives, Executive Management Team, Members of the Board of Directors, and its Main Activity (Service or Product). (10 marks)
b) Perform a technical analysis of the company to include the following:
i. A line chart showing trade information over the last 12 months ( JSE website) (10 marks)
ii. A bar chart showing annual returns for the last ten years ( JSE website) (10 marks)
iii. Latest news relating to the company for the last 12 months ( JSE website) (10 marks)
iv. Annual Dividends paid over the last 5 years and comment on the trend. (JSE website). (10 marks)
v. Prepare a Summary of your company to include the following: Last Traded Price, Today's Range, 52 Week Range, 52 Week Volume Range, Market Value of Shares Outstanding, Shares Outstanding, Week to Date, Month to Date, Quarter to Date and Year to Date. (JSE website). (25 marks)
c) Analyse the stock price between February 01, 2021, and February 01, 2022, and discuss whether you would recommend selling, holding, or buying this stock. State the reason(s) for your selection. (25 marks)
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