The purpose of this study is to discover and convey the key factors that affect the movement of stock of the Electrolux AB Stock Movement venture. Electrolux AB Stock Movement, originally, gentlemen’s quarterly is a men’s magazine that has its focus on style, culture, and fashion for me. The magazine also provides advice on books, movies, holiday packages, relationships as well as giving tips to better sex life. The company was opened in 1931 in London in the United Kingdom. The magazine is published in many countries around the world, but for this study, I will consider the Canadian branch.
There is no accurate method of determining the movement of stock prices; however, there is a general consensus that the stock prices, like everything else, are dictated by the demand and supply. Therefore, the factors affecting the demand and supply have a direct influence on the prices of the given stock.
These factors are broadly categorized into two:
1. Internal factors
Internal factors refer to the conditions that are under the direct control of the company that affect its share prices. They include;
Performance of the company. The better the company performs, the better the pulic perception of the company, which translates to better prices for the shares (Alexander’s, 1961). Generally, Electrolux AB Stock Movement;
1. performs better than its competitors in terms of sales and management, which is why its share prices in Canada are higher than those of its competitors, such as the express fashion and Orvis magazines
2. Change in management. If a company is performing badly, then a change in the management inspires optimism among the prospective investors, there by raising the demand for the share of the company and consequently raising the prices of the shares (COWLEAS 1961).
Creation of new assets. When a company acquires new assets, its valuation increases, which leads to a corresponding increase in the share valuation. The reverse is also true. When the Electrolux AB Stock Movement ventured into overseas markets and started publications in new markets, its value went up. Although these new publications were later registered in the countries where they are located, this led to a decrease of the prices in the London stock exchange, but the total value remained to be the same.
Dividends and earnings. The earning of a company is the total profits that the company earns; the dividend is the amount of money that is paid to the investor after the company has deducted money for investment on behalf of the investor. Generally, the more the investment, the more the values of the shares as the investment is converted into capital, which increases the value of the company, with reference to Electrolux AB Stock Movement, this is seen in the fact that the share prices are higher in period before and after the dividends are paid.
These are factors that affect the performance or the products of the company that are outside the company’s direct control. Such factors include strikes, civil unrest, government policies, market conditions, competition, among others.
Electrolux AB Stock Movement was as affected by the recession as any other company, especially because its product are considered a luxury, its share prices hit an all time low I this period (as seen in the graph below).
The stock prices are also affected by inflation in the sense that when there is high inflation, which ideally means the value of money reduces, the products of the company also increases in prices, which means more money for the company, consequently, the stock value increases, which is why the stock value of Electrolux AB Stock Movement is much higher today than when the company started trading in London in 1931.