Financial Investment Research Paper Example | Topics and Well Written Essays - 3000 words

Financial Investment - Research Paper Example Ratio analysis and share price analyses are 2 most important and commonly used tools to analyze the financial position of a particular stock. A proper fundamental and technical analysis generally provides a basic idea regarding these aspects and helps investors make informed investment decisions. Generally the intrinsic value of the stock is determined from the financial facts given the annual report of the company using free-cash flows and it is compared to the current market price of the stock. When the stock is found to be undervalued then it provides an opportunity for the investor to buy the stocks at lower current price and then sell it in future when stock prices approaches target price. This strategy will help the investor make profits by buying stocks at lower price and then selling it when stock prices appreciates and ceteris paribus. Options for Investment Decision While there are many options available to an investor for investment, it is important to note that not all in vestment destinations are equally safe for investment when risk of investment is considered. The safest investment destination is government securities because there are very limited chances that the government will default. Another most commonly preferred investment avenue is common stocks of publicly traded companies. Companies whose stocks are listed in stock exchanges (like NASDAQ, NYSE, etc.) may be traded in secondary markets. But whenever the investor considers investment in equity oriented securities and stocks the risk of investment significantly increases. This is because when the investor buys equity shares of any company the investor actually subscribes to paid-up equity capital of the owners of the company. This automatically makes the investor the new stocks holder and assumes that the investor will bear the risk associated with business. Purchasing equity shares provides the investor the opportunity to earn dividends and residual profits proportionate to respective su bscription or investment. Equity stocks are risky because the shareholders are entitled to earn from investment only after all liabilities of the business entity has been paid-off. This means that in case the business has no profits left for distribution to shareholders after honoring business liability then no dividends will be paid to shareholders. Thus, investment in company stocks is both risky and rewarding in the sense that higher the risk the higher would be the expected return. It is advised that before making any investment decisions for investment in particular stocks the financial managers must gather all necessary information related to business regarding financial position, outstanding financial liabilities and the ability of the business to honor such liabilities. Company Overview The company chosen for financial analysis is Apple Inc. (Ticker Symbol AAPL) which is a Fortune 500 company whose shares are publicly traded. Apple Inc. is a leading hardware and software com pany which has headquarters in Cupertino, California, U.S. The company has over 400 global retail stores spread in over 14 countries and it is listed in NASDAQ as a publicly traded company. Apple also forms a component of S&P 500 composite index and NASDAQ-100 component. The financials of the company is very strong and for the year ending 2012, the company reported a net profit of over UD$ 41

Organizations of Similar Size and Similar Structures Essay

Organizations of Similar Size and Similar Structures - Essay Example The structure provides pointers to the old and new members, to the outsiders, stakeholders, shareholders and other concerned or interested parties. This therefore means that regardless of which organization, as long as it has clear rules of governance and operation, then anyone can understand what it is all about. This paper is going to analyze in details and with examples how even though organizations may vary in size, their structures are still similar. Will organizations of similar size have similar structures? One of the reasons all organizations have similar structures no matter their size is because the main aim of all organizational structures in all the organizations is to facilitate the coordination of the employees and the management in achieving the organizational goals and even objectives. This is so because the structures put forward by organizations have similarity in characteristics since all the organizations have a goal they want to achieve even though these goals ma y be unique depending on what the mission of the organization is. The other reason is based on the existence of the different organization structure types. These include: functional structure, structure based on division, structure based on geographical location, division of the structure depending on the process, on the product and on the customer (Daft, Murphy and Willmott, 2010, p. 107). All these provide the reasons as to why when it comes to the structure of the organization, the size of the organization does not matter. All organizations need to separate their employees according to the skills each possess in order for them to have easier time consulting each other. This is for example true in that the organizations structure their employees into management, accounting and sales among others. The advantages of this type of structure are that the organizations are able to create efficiency, allow rapid decision making and also promote labor specialization within the organizatio n. This system has its own downside in that there is minimum career development as there is no room for interacting with employees from other careers and seeing them at work. The other is that the employees always have low morale as they have no challenges and competition since they are secluded in their own functional areas (Daft, Murphy and Willmott, 2010, p. 108). The other type of organizational structure that is enforced by all organizations is the division of the structure based on the products (and even services for those organizations dealing with services and not products). When structuring an organization based on its products, it means that all the strategies or decisions that will be made by the management and even the employees will be considering the products or services they are dealing with and which enable them achieve their goals. This concentration on the products or services being rendered does not have size distinction. For example small businesses (that are fam ily owned for example) have very few products they deal with but they fully concentrate on them in order to get their livelihood and provide for the family. The same happens for the large business (even those with several branches globally) where they concentrate on their products in order to gain profit (or for the non-profit organizations, in order to provide the services or be able to achieve their goal). The disadvantage of this type of organization is that it requires a more skilled management which may prove to be too