SOFAZ Stock Pitch Competition Application Form
University name Azerbaijan State Economic University
Full name Major Degree type and study year Email Mobile number
Avaz Gafarov Finance Bachelor,4th year [email protected] 050 752 55 85
Balamirza Gurbanzada Finance Bachelor,4th year [email protected] 050 851 59 69
Javid Garazade Finance Bachelor,4th year [email protected] 050 532 75 30
Togrul Fattahov Marketing Bachelor,4th year [email protected] 055 235 02 24
In less than 500 words, describe top factors affecting global stock markets. Use examples, where possible.
Stock markets are affected by various economic,political,natural,behavioural factors.Economic factors can be interest rates ,inflation ,exchange rate ,industry specific supply-demand imbalances and etc. For example , if interest rates rises ,it will increase the cost of borrowing of companies which will lower profits of them. Paying less dividend because of lower revenues may make companys share less attractive to investors, so value of shares of that company will depreciate in the market. As another example ,we can show exchange rate changes which results in appropriate changing demands of goods of country.
Stocks of companies whose customers base mainly is foreign customers will suffer slower demand to its products with appreciated currency.
Moreover, political factors have significant impact on stock markets. If government decides to set higher tarrifs on exports or imports the companies who trade internationally will be influenced by higher costs. Again, higher costs will result in lower revenues and lower intersest by the market. Lower revenues will not make much more worth for market participants,so overall returns of stock market will deteriorate.
In addition,behavioural factors plays imperative role in stock markets. Expectations of market players can affect positively or negatively to stock markets. For example,most of investors believe in future success of AI applied tech companies and they have high expectations about their future profitabilities. Such kind of expectations can tend overall interests of market toward specific market segment much more rather than other sectors .As a result it adds more value to companies which operates in this sector.Moreover,expectations about future economic growth defines trends in stock markets.For example,expected slowing economic growth in UK because of Brexit matters can direct the interests of investors to other countries.
In conclusion,there are so wide range of factors shapes general trends in stock markets.It lies through internal effective management of single company to wide range of global factors.Analysing of stock market based on their operating industries can give us much more clear understanding of them rather than general theories about them.