INVESTMENT THEORY

Investment Theory

Investment Theory

Introduction

There is a need to define the importance of Investment Theory. Normally, the companies give a lot of importance to the Investment related issues. An assessment would be conducted of the companies known as Barclays Bank, Mark and Spencer's, Virgin Media, British Airways, BP Oil and Gas. These companies are the major leaders in their industry and have performed exceptionally well in the stock markets. The role of all these companies is crucial in the financial sector of any country. Therefore, all the issues and aspects related to Investment Theory will be discussed in detail.

Start Prices on 31/12/2012

 (Currency USD)

Barclays Bank

260

Marks & Spencer

382.4

Virgin Media

36.3

British Air Ways

74.61

BP Oil and Gas

423.95

Data Collected

Share Prices As on 31/12/2012(Currency USD)

Barclays Bank

262.4

Marks & Spencer

382.3

Virgin Media

2236

British Air Ways

75.36

BP Oil and Gas

424.8

Share Prices As on 1/1/2003(Currency USD)

Barclays Bank

385

Marks & Spencer

315

Virgin Media

13.4

British Air Ways

270.4

BP Oil and Gas

427

Share Prices As on16/4/2013(Currency USD)

Barclays Bank

294.8

Marks & Spencer

391.5

Virgin Media

49.73

British Air Ways

86.89

BP Oil and Gas

445.6

(Source: www.uk.finance.yahoo.com)

Dividends Paid(Currency USD)

Barclays Bank

3.5

Marks & Spencer

17.2

Virgin Media

0.04

British Air Ways

0.485

BP Oil and Gas

6.0013

FTSE 100

Barclays Bank

0.46%

Marks & Spencer

0.47%

Virgin Media

0.48%

British Air Ways

0.49%

BP Oil and Gas

1.05%

(Source: www.uk.finance.yahoo.com)

FTSE 100 (Start)

Barclays Bank

0.81%

Marks & Spencer

0.89%

Virgin Media

0.78%

British Air Ways

0.87%

BP Oil and Gas

0.79%

Following are the charts of share prices of each organization till 2013:

Barclays Bank:

(Source: www.uk.finance.yahoo.com)

The share price chart of Barclays Bank shows that the Bank is able to regain its position in the equity market and is able to attract the investors as there is a consistent increase in the share price of the Bank. After the financial crisis in 2008 Barclays Bank was unable to survive but it has able to retain an increase in their share price and thus they are able to provide competition to their rivals in the banking industry.

Marks & Spencer:

(Source: www.uk.finance.yahoo.com)

The share price chart of Marks and Spencer also show a similar situation as the firm is able to attract more investors and they are able to perform well in the equity market. Marks & Spencer are also on the track of reviving their position in the equity and in UK market after facing the serious financial crisis in 2008. Since 2003 the shares of Marks & Spencer were on a steady track but in 2008 they fell below average and now they are able increase the share price at a much higher price.

BP Oil & Gas:

(Source: www.uk.finance.yahoo.com)

BP Oil and Gas had to face serious operational and internal management issues that enabled the organization to close its operations in many countries. BP from 2003 onwards were selling their share price at a high price but financial, operational and internal crisis at the firm were able to decrease the share price to the lowest in the history of the company but measures taken by the management has enabled the firm to regain its position in the equity market. Since then is an increase in the share price of the organization once again.

Virgin Media Inc.:

(Source: www.uk.finance.yahoo.com)

Virgin Media Inc. in the past was selling their shares at a low price from 2003 onwards but during the year 2012 the firm ...