For the last many years, the automobile industry is not performing well due to high inflation and recession in the overall economy. The purchasing power of consumer is also decreasing over the years. To consume luxurious products has become a dream of middle income class while for lower data copied from vu solutions dot com income class it is difficult to meet both ends. Under such circumstances, the management of ABC Automobile wants to determine the affects of recession and inflation on its stock price. For this purpose they have constructed a bar chart of the stock prices of ABC Automobile for the month of January to April, 2012. The chart (hypothetical) is as follows:
Keeping in mind the above information, as a financial analyst you are required to answer the following questions with logical reasoning:
Identify the category of the stock of ABC Automobile.
Discuss how the recession and high inflation rates have affected the performance of ABC Automobile’s stock?
Discuss how the recession and high inflation rates have affected the performance of ABC Automobile’s stock?
