Would you buy shares in the company you want to work for?

Essay by CharleshodUniversity, Bachelor'sB+, April 2004

download word file, 12 pages 4.0 2 reviews

Topic Definition

Would you buy shares in the company you want to work for?

Introduction

Who would not be happy to work for companies like, Procter & Gamble, Johnson & Johnson, Gillette, Colgate, Ford, and GE among them. All these companies have a high reputation since long time ago and overall with a good position in our mind as one of their most important strategies.

One might goes behind of those corporate names, if one wants to obtain a good, "secure", and very well paid job. However, has one ever wonder if those companies, which we desire to work for, are stable? On the other hand, would we trust our economic future to them according to its actual or future finances?

On the other hand, these days many new companies are coming into the market without the tradition of those above named. Many of them are not shown in the financial pages and so, are not possible to compare with other in the same sector or industry.

Therefore, an uncertain panorama comes to our mind and some questions appear such as, is the company I want to work for very well valuated in the Financial Markets? Or like our topic questions, would I buy shares in the company I want to work for?

Therefore, our aim inn this essay will be to show how to evaluate Stocks, describe the variables, which affect companies' value and their stock. These factors will help us to evaluate the performance of companies at the financial markets. Also we describe briefly the new schemes Ownership-employee, which seek to tie the performance of companies to the performance of their employees.

Would you buy shares in the company you want to work for?

1)Global Understanding of the financial system

We have been witnesses that in the last...