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Business & Marketing
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Research Paper
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Topic:

Currency and Stock Analysis

Research Paper Instructions:

Finance theory provides investors with an asset pricing formula but does not really predict how asset prices might change. Economics provides a great deal of insight as to how asset prices will change. The main point is that you do not need to have studied finance theory to construct a good project. You do need models we will study in eco365 as well as basic micro and macro theory.
Both the foreign exchange market model introduced in ch. 2 and the open economy IS-LM model are good models to use for predicting currency movements. You might also use any conditions studied in ch. 3. Stock prices respond to higher profits. A company whose profit stands to increase during the next year will experience a rise its stock price very quickly; if profit seems likely to fall over the next year the stock price will fall quickly. The reason for this is that investors build events that are expected to occur in the future into stock prices immediately. Both micro and macro factors affect stock prices. If demand for the firm’s products is expected to rise or its costs are expected to fall then profits should rise. The reverse is also true. Microeconomic factors affect both demand and costs so these should be considered in the investment decision. But macroeconomic factors are also important since profits rise during economic expansions (more prosperity creates rising demand). Recessions create falling demand. Be sure to discuss macroeconomic conditions when justifying investment decisions.
I choose KRX Korea Exchange, and the stock is Samsung Electronics Co. Ltd KRX:005930. the time frame from May to June.
I have an example in 2019 but you have to find all the sources in 2021.
Samsung_Electronics_Co_example.docx

Research Paper Sample Content Preview:

CURRENCY AND STOCK ANALYSIS
KRX Korea Exchange and the stock is Samsung Electronics Co. Ltd KRX: 005930. The timeframe is May to June.
Student Name
Course ID
Instructor
Institutional Affiliation
Date of Submission
Samsung Electronics Co. Ltd KRX: 005930
Samsung Electronics Co. Limited was founded as a grocery store and has grown into a global technology enterprise. Located in South Korea, the company is driven by innovation, research, and development. Through innovation, Samsung has gained a competitive advantage while developing a diversified product portfolio and remains the second-largest technology firm globally, behind Apple, with a market capitalization of USD 326 billion. The company manufactures technology equipment, electronics, telecommunication gadgets, household appliances, and semiconductors (Kim et al., 2021).
Samsung Electronics reported a 44% increase in profits for the 1st quarter of FY2021 compared to 50% growth in FY2020. The rise resulted from a surge in global smartphone and TV sales. Similarly, its mobile division realized between 1 and 4.15 trillion won in profits from the Galaxy S21 series sales (Samsung Electronics, 2021). According to industry analysts, Samsung is expected to invest 10 trillion won into chip manufacturing compared to the six trillion invested the previous year. In FY2021, the company announced a 17% revenue growth to end at 65 trillion won. However, its stock declined 0.2% compared to a 0.2% increase based on the KOSPI benchmark. In the current financial year, the stock has gained 6.2% against KOSPI'S 8.8%. Despite overall growth, a 20% (equivalent to 3.6 trillion won) profit decline in the chip division (Kim et al., 2021). Analysts project growth driven by the recent 5.3% increase in DRAM chip prices owing to a global shortage. In the FY2020, the stock price gained 50% to trade at USD1850. Thus, Samsung stock offers a balanced portfolio with an estimated historical five-year return of 130% against 65% on the S&P 500. Bloomberg projects that Samsung's growth will be driven by growth in DRAM and 5G markets. The company is banking on the next-gen DDR 5 DRAMs to grow profitability in the chip division (Samsung Electronics, 2021). Similarly, the demand for 5G will continue to grow due to exponential growth in the semiconductor division. Growth in these two divisions will reflect in stock prices as analysts predict an upward trend in the share prices throughout FY2021.
The company is renowned for its environmentally friendly solutions that are people-oriented and is committed to ecological protection and low energy solutions. It manufactured energy-efficient technologies and was ranked 6th in the green technology innovation among tech companies according to EPA's 2018 Green Power Partner report (Kim et al., 2021). ...
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