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Write 8 pages with APA style on Fundamentals of Finance: Analysis of the London Stock Exchange Market and the Stock Price Movement of HSBC and Barclays Bank.
Write 8 pages with APA style on Fundamentals of Finance: Analysis of the London Stock Exchange Market and the Stock Price Movement of HSBC and Barclays Bank. This report analyses the stock price of one of the renowned financial institutions in the world, HSBC. HSBC is considered as the second largest financial and banking group in the world.  .In this report, the stock price movement of HSBC has been compared with the average market movement of the London Stock Exchange. In addition to this, the stock price movement of HSBC is compared with one of its competitors, Barclays Bank. In order to have better analysis, the return from the market is also compared with the return of Barclays as it would help in analyzing better whether the movement in price is because of the banking industry or the company itself. Barclays has been chosen as the competitor in the report because it is another multinational bank operating in different countries like HSBC.HSBC has considered as the second largest banking and financial services group of the world and according to Forbes Magazine, it is also the second largest public company [6. 7]. . HSBC has approximately 7,500 offices in 87 different countries of the world with its headquarters in London, United Kingdom [3]. Customers of HSBC have increased with the passage of time and now its total customers are almost 100 million (Annual Report and Accounts, 2010). Total assets of the company in June 2010 were 2.418 trillion USD. Operating income of HSBC has increased in 2010 from 2009 and it has reached a figure of 19.04 billion with a net income of 13.16 billion USD (Annual Report and Accounts, 2010). .
Liquidity ratios of HSBC do not show very positive figures as the current ratio of HSBC in 2010 is 0.27 which has decreased from 0.30 in 2009. However current ratio in the last five years has been in the range of 0.27 to 0.32 which shows that the bank does not have sufficient current assets or it has too many current liabilities.
Net profit margin has increased in 2010 since 2007. however, it is understandable because of the financial crisis that hurt the economy of the world particularly the financial sector. Net profit margin has increased to 36% in 2010 from 16% showing that the economy, as well as HSBC, is recovering from the recession. .  . .
