The Closing Stock Market Price of Caffe Nero Research Paper

The Closing Stock Market Price of Caffe Nero - Research Paper Example When the stocks of companies are offered in the stock exchanges, like in this case of Caffe Nero, people will be encouraged to invest or sell stocks there. The potential investors of Caffe Nero will refer to the financial statements in deciding to invest in Caffe Nero. The financial statement is a big factor that will entice prospective investors to invest in Caffe Nero because of its 2005 net income of 1,719,000 pounds and 2004 net income is 1,684,000. Bankruptcy news can bring down the company’s stock price. News of a merger or acquisition by one big company of another big or small company will generate another round of huge investments in the new company. The prospective investors can artificially cause the stock market price of Caffe Nero to go up. The stock market price for a single stock of Caffe Nero has increased because many investors want to put their money in the income generating Caffe Nero. The closing price of Caffe Nero stock is very high due to its aggressive m arketing strategy. According to Allegra Strategies, the United Kingdom coffee industry will rise by more than 10% annually for the next few years. Stock market listing of the stocks of Caffe Nero and other companies will generate funds for their business. The stock market price is based on the basic economic principle of supply and demand principle. But if there are more people offering to dispose of their stock market shares in a company, like the Caffe Nero located in picturesque England than there are buyers, then the tendency is for the stock market price to go down. In the case of Caffe Nero, the market price just remained the same for the past years.