MARKET ANALYSIS AND REPORT Essay Example | Topics and Well Written Essays - 1750 words

MARKET ANALYSIS AND REPORT - Essay Example The following factors help in obtaining the reason behind different arithmetic means exhibited by the given institutions: An appropriate investment decision will entail the consideration of the prevailing political and legal changes. These changes, including tax changes, have direct influence on the decision made by an investor in the industry. The changes either can be against or in favor of profitability witnessed depending on the strategies taken by the industry to reduce the influence. For instance, reduction of tax in a certain industry will attract investor. Tax decrease normally associates to high profitability in that given industry consequently attracting more investors. Before making investment decision, investors always consider the historical performance of the company in the market. The historical performance gives appropriate information for determining the probability of a company to achieve profitability in its operation. Since profit acts as the main objective any investor, their decision will depend on the profitability in the recent years. The ability of a company to sustain the interest of the investors for a long time will depend on the associate expected future trends. In future, a company may decide to adopt mergers, acquisition or dividend declaration leading to the change in the image it upholds to the investors. Declaration of dividend by a company accentuates the certainty of the company to increase the share dividend to the investors. Further, action by a company to merge will also insinuate profitability to the investors. Acquiring part of a company also increases the share dividend that a company gives to its investors. The occurrence of these three changes shows that expected future events may affect the investor’s decisions. These factors, as indicated, influence the choice made by the investors making them be of significance to the manager when making