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Respond to the following discussion if you agree or disagree, and why. You can also provide recommendations on how to improve: The stock price of
Respond to the following discussion if you agree or disagree, and why. You can also provide recommendations on how to improve: The stock price of our bank is something our team has been watching a lot lately. Looking at the stock price is a good indication of how well our bank is performing. It also is a good way to compare our bank to the rest of the class, to see how we are performing next to them. In the first two quarters we did not pay much attention to stock price. In quarter 4 we made some bad choices and saw a terrible stock price. Once we noticed how bad it was, we were determined to fix it. Now that our stock price is average with the rest of the class, I feel that our bank is performing the best it has in the simulation. When trying to get our stock price up, I learned that is a pretty good indication of how well our bank is performing every quarter. Of course, there is a little more at play, but an investor is less likely to invest in a company that is not performing well. I feel that the main reason the stock price goes up is net income. When we have a better net income, we tend to have a better stock price. In quarter 9, I learned that is not always the case though. We saw an increase in our stock price, but a negative increase in our net income, earnings per share and a lot of ratios went down slightly. The only reason I feel that we saw the stock price increase was the increase in our loans and deposits and the better economic conditions. Even with the different reasons stock prices fluctuate, I still feel that it is a good indication of how well your bank is performing
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