Stocks and IT
We often hear that one company has bought some amount of stocks of another company. But a person, who is not engaged in that process can hardly imagine the reason of buying/selling stocks.
But everyone know, that stocks, like cars, houses, watches and most other products, make an affect, which is sometimes good or bad.
So, most of the stock buyers admire an affect of the stock immediately when they hear its name before thinking about its price-to-earnings ratio or the growth of its company’s sales. Fortune magazine made a research and listed Most Admired Companies. Such researches of companies’ stock appeal took place since 1983. But the researches of modern economists shows, that the investors who were attracted by affect to stocks of admired companies paid for it with lower returns. In 2008 the first place in Fortune magazine’s rating was taken by Apple – IT corporation, which focuses on designing and manufacturing consumer electronics and software. The forth place took Google, another IT company, which earns revenue from related to its Internet search, e-mail, online mapping, office productivity, social networking, and video sharing services as well as selling advertising-free versions of the same technologies, web development, etc. Last year these companies were also in top 10, and in 2006 there were another IT corporation in top 10 list. It was Microsoft. Of course, it is only America’s top rating. But the number of IT companies in it grows and one of them has already become number one.