Question

Suppose you are interested in investing in shares of Samsung Electronics of Korea, which is a world leader in mobile phones, TVs, and home appliances. But before you make an investment decision, you would like to learn about the company. Visit the website of Yahoo (finance.yahoo.com) and collect information about Samsung Electronics, including the recent stock price history and analysts’ views of the company. Discuss what you learned about the company. Also discuss how the instantaneous access to information via Internet would affect the nature and workings of financial markets.

Answer 1

The search of Samsung Electronics on Yahoo Finance results in various kinds of information about the stock. Its current price is 47000 KRW (South Korean Currency). Its 52-week range has been 36,850.00 - 47,600.00 and the last date on which a dividend was paid was 2019-06-27. Its 3-year monthly beat is 1.13 and its market cap is 294.186T. Its analysis tab shows that the current quarter's revenue estimate is in the range of 58.77B to 68.89B. Its EPS or earnings per share has varied between 1600 and 1900 since the last 2-3 years. According to analysts, it is expected to grow at a rate of 4.53% per annum for the next 5 years.

We learn from the analysis of Samsung Electronics that it is a good stock to buy though it might be overvalued currently. It has good potential to grow and the position it is currently in gives it the premium it presently carries.

Instantaneous access to information of markets via the internet is very beneficial for the retail investors and the industry as a whole. This is because it creates equality among all types of investors and no one investor or institution has an unfair advantage over others in terms of access to information. It makes the markets more efficient and therefore, as a result, the opportunities to make a return in the market reduce.