Stock market is a public unit for the trading of company stock or shares. In United Kingdom, the FTSE 100 Index is a stock index of the 100 most valuable UK companies that are listed on the London Stock Exchange. An independent firm that began as a joint business enterprise between the London stock exchange and financial times maintains FTSE. It is monitored in real time, and results or changes are published every 15 seconds. In this essay, four of the FTSE 100 companies are under analysis. These are Lloyds Banking Group, Autonomy Corporation, Eurasian Natural Resources Corporation, and Royal Dutch Shell (Alexander 2011, p. 1-2).
The companies' structure
Lloyds Banking Group is considered a major British financial institute. The group's activities are categorized into four business divisions: insurance, retail banking, wholesale and wealth, and lastly international. Following the endorsement of both the Lloyds TSB and HBOS shareholders, the surrender was accomplished in 2009. The HBOS name is no longer used in public; however, it will still be as an employing agency. Divestment and creation of retail banking commercial having at least 600 branches, has significantly increased market share of the personal current account, and influenced percentage increase in the group's mortgage book.
Share price history of the Lloyds Banking Group
Early 2008, Lloyds re-based share price and original share price were 51 and 103 respectively. This was contributed by the fall in bank share prices whereby Barclays suffered a 25 percent decline. The US government support package was also announced, and UK government support was projected to enhance more lending. However, greater market uncertainty was not well anticipated due to lack of proper details. In early 2009, the Lloyds confirmed a loss of £11bn at HBOS. The share prices drastically fluctuated to 22 and 43 in March that year, due participation in GAPS announcement, they increased to 44 and 66 in June, due to open offer to cash in government favorite shares. At the end of the year, the prices were at 55, 55 due to completion of rights issues with 95.3 percent take up. This fluctuated to 47, 47 in mind 2010 due to a lot of restructuring, and economy instability caused by oil prices and climatic conditions.
Eurasian Natural Resources Corporation PLC, headquartered in London is an expanded natural resource firm dealing in processing, mining, logistics, energy, and marketing. It is listed on the London stock exchange and a constituent of FTSE and listed on the Kazakhstan stock exchange. It floated at least 20 percent of its equity to London stock exchange, and it was listed to the FTSE 100 in early 2008. In late 2009, the company acquired Central Africa Mining Exploration Company (CAMEC) in DRC; owing to its bid to continue to diversify. It went further and acquired a 90 percent interest in Chambishi Metals PLC in Zambia, and with a 100 percent interest in Comit Resources FZE which is a Dubai based sales and marketing company. The company has substantially grown through the diversification strategies that led to its listing.
ENRC is a most important diversified natural resources group with totally integrated processing, mining, transport, and energy operations. It is one of the world's major producers of ferrochrome; it is also regarded as the world's sixth biggest exporter of iron ore. In addition, it is the fifth major producer of traded alumina in the world; and in Kazakhstan, it is one of the largest electricity providers. The latest share trade information about the ENCR, as provided by the Data look corporate Solutions, which is their data, share prices, news, and fundamental incorporating firm is as follows: On 18th march 2011 the share prices ranges from 907.50 buying to 903.00 selling. It continues to fluctuate or stabilize in some cases due to the oil prices. The stock exchange is affected by various aspect of the globe and the regulations of the world normally hamper its control as shown by LiveChart (2011, p. 1-2).
Autonomy Corporation PLC jointly headquartered in Cambridge, UK and San Francisco, USA. It is among the world's leading software companies. The Cambridge University has greatly encouraged its growth since most of the software technologies researches in the university are implemented here. It builds up a diversity of project search, and knowledge administration applications with the use of adaptive blueprint recognition procedures centered on Bayesian deduction in collaboration with conventional methods. It is a constituent of FTSE 100, and it is listed in London stock exchange (CarbonDesk, 2011, p. 1-6).
It floated its shares on EASDAQ exchange in 1998 at a share price of 30p; this was when the dotcom bobble had hit the software industry. In 2005, it acquired Verity Inc., at approximately $ 500m; verity was one of its major competitors. The key technology of the Autonomy, Intelligent Data Operating Layer (IDOL), allow exploration and processing of video, structured information, text, and audio. This processing is referred to as Meaning-Based Computing by the Autonomy Company and has influenced market share of the company. Autonomy's technology tries to recognize any form of unconstructed information, be it voice, text, or video, and concerning that understanding execute automatic operations on the information. The current market information includes bid of 1548.00, share price of 1552.00 from a previous one of the 1527, trading volume of 816,888. These are data that are subjected to changes as soon as possible.
The fourth of the company analyzed in this essay is Royal Dutch Shell, commonly referred to as the Shell. Shell is a globally acknowledged gas and oil company. It is headquarter is situated at The Hague, Netherland and has a registered office at the Shell centre in London, UK. It is one of the biggest energy company and second major company measured by revenues in the world. It is regarded as the six gases and oil super majors.
Royal Dutch Shell (RDSA) put out a striving new development target, increasing its production goals for oil for 2014, as the Anglo-Dutch group guaranteed to spend more than 62 billion pounds over the subsequent four years to maintain their market share and project further in the industry. The Shell has more than 30 fresh projects geared towards 2020 as it updated investors on its strategy. Their profitability is increasing, and they believe they are on track for growth projections. The recent share trade of the Royal Dutch Shell is at 2,150. There are factors that are affecting the oil industries, such as political instability in major oil producing countries. Eckett (2009, p. 102) claimed that the shell uses well-structured prediction models to ensure that the risks are but at bay and business continues.
Data compression techniques for stock market prediction
The technique applied during the study of the above company stock market existence was data compression. Stock market is one of the most profitable and complex systems to model accurately. Stock market prices are examined on how the new information affect or impacts the prices and true value of the security. This technology has technical analysis of the stock market thus help to predict the challenges and advantages of investing in the stock market. It also has well-structured stock market models which assist the investor to analyze the market properly before investing. Market efficiency states that stocks are priced in such a way that all public information present is included in the price and change is effected due to new information. This technology gives this analysis and efficient market hypothesis (Fischer & Michael 1972, p. 79-121).
This technology has various advantages over most of the technologies, however, it takes time to conclude the findings and thus make others invest without considering the full effects.
Risks involved in investing in the stock market
Investing in stocks market is risky; however, it is worth trying. Economic risks are the most obvious ones in investing, since economy can deteriorate without any warning. Terrorist attacks and market burst are the most known risks. Inflation is another risk, since it is the tax on every investor is not spared if it occurs. Inflation hurts the investors the most on fixed incomes, because it affects the value of their income flow. The market value risk is that which is concerned with the effect incurred when the market turn against or ignores your investment. Being conservative has also been noted as a risk since it may prevent one from risking other venture. Business is risk taking, and stock market is not exceptional. The risks involved should not be obstacles, however, should help an investor to analyze the market well before investing.
A stock market gives a framework for investors to avail finances into stocks and attempt to make profits through buying undervalued stocks and selling over valued stocks. The stock market must be able to predict those changes adequately. Efficient investment selections that target ones objectives and good risk profile maintain individual stock and bond risks at a satisfactory level (Richard 2006, p. 122-150). It is advisable to make proper analysis of the market before investing. Most of the FTSE companies have well analysis protocols that help them stay in business and enjoy the listing of London stoke exchange market. It is risk taking and anyway life is risk itself but proper arrangement reduces the risk.