Share Price

CHAPTER ONE: INTRODUCTION

1.0 INTRODUCTION

This chapter contains background of the study statement of the problem, purpose of the study, research questions, hypothesis, scope of the study and significance of the study.

1.1 Background of the study

The share prices are the major indicators of economic conditions, however, share prices are affected by various forces in the economy and there exist one to one relationship between economic conditions and share prices.

General economic conditions and current uncertainties could adversely affect the demand of accompanies products and the financial health of its suppliers, distributors and resellers.

A companies operating performance depend significantly on general economic conditions in its country and abroad. At times in the past demand for the company’s products has been negatively impacted by difficult economic conditions.

Additionally, some of a company’s educations appear to be delaying technology purchases due to concerns about the overall impact of the weaker economy(s).Although recent macroeconomic trends seem to indicate an economic recovery, continued uncertainty about future economic conditions makes it difficult to forecast future demand for the company’s products and related operating results.

Share prices are the main indicators of a company’s performance and when there are poor results the share prices decrease and increase when the company performing well.

A financial market provides an arena for trading of financial instruments and here most well performing companies are listed. Should global and or regional economic conditions deteriorate demand for companies products could be adversely affected as could the financial health of its supplies, distributors and resellers thus its performance is low reducing its value hence low...