Question: Read the article and answer the question. 1.The common stock I will be looking into will be Samsung Electronics Co Ltd stock. Samsung Electronics Co
Read the article and answer the question.
1.The common stock I will be looking into will be Samsung Electronics Co Ltd stock. Samsung Electronics Co Ltd's symbol is KRX:005930 and is not like other major U.S stocks. To invest in Samsung stock, an individual must purchase it over the counter as pink sheet stock. But to properly invest, one must invest in the Korea Exchange.
2. The be Samsung Electronics Company is no stranger to running into complications as well as bouncing back from them. It wasnt that long ago when Samsung ran into the exploding note 7 situations. This situation occurred in the year 2016 where customers who purchased the Samsung Note 7 were reporting that the batteries were exploding. According to articles written around that time, 90% of the customer who purchased the device asked for a replacement. Later on, the device was completely discontinued to prevent any more complications. USA Todays Jon Swartz later noted that Samsung attained a positive reaction once the newest device, the Note 8, was unveiled.
3. Recently, in July 2019, Samsung saw a period where its stock saw a massive fluctuation. Laura He from CCN Business stated that Samsung saw a decrease in its stock when the smartphone maker reported a 56% fall in its operating profit for its second quarter. This fall in its operating profit was the first time that Samsung saw a great dip, resulting in a substantial stock fall. Samsung's reasoning for the large dip was due to the slowing down of demand towards premium products. They saw a large increase in the sale of their cheaper models compared to their flagship devices.
4.Stock fluctuating doesnt always have to mean stock for a company is decreasing. Rather it can also mean stock could be seeing irregular increases. Their many internal and externals factors can result in stock seeing a fluctuation towards their stock. An example of an external factor can be the exploding battery scandal, which resulted in consumers distrusting the Samsung company. At the same time, external factors can be scandals involving employees or even people in charge of a company. Many companies have gone under because stockholders lose trust when they learn that someone is stealing money or purposely making the company look bad. Sometimes a stock can see irregular changes at random points where there arent any scandals.
answer the Follow-Up Questions (please respond to these as well):
1. Based on your analysis, did internal or external factors have the greater impact on stock price? Which factors had the more long-lasting effect? Which factors had the shorter effect? Why do you think it is so hard to predict changes in stock price on a day-to-day basis?
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