Stock Price Movement of McGraw-Hill Publishing Inc Research Paper

Stock charge Movement of McGraw-Hill make Inc - Research Paper ExampleAs a further proof, consider the clear or loss faced by an investor who invests $1000 in the stocks of the company on October 14, 2008 and sells those very stocks precisely 52 weeks later on October 15, 2009. For simplicity, the opening prices of the stocks have been taken into account.Profit/Loss after investmentOn October 14, 2008, opening stock price of McGraw-Hill Publishing = $28.06Hence, with $1000, list of stocks that the investor purchased = (1000/28.06) 35.64However, since number of stocks cannot be in fractions, so, 35 stocks are being considered.So, the purchasing price of 35 stocks = $982.10.Again, on October 15, 2009, opening stock price of McGraw-Hill Publishing = $29.25Hence, the gross return to the investor after selling 35 stocks = $(29.25 x 35) = $1023.75.Hence, net kale to the investor after 52-weeks = $ (1023.75 982.10) = + $41.65. final resultAlthough there had been a net profit in the long-run, but the company had been subject to a number of short-run losses mainly because of inconsistency surrounding some overhanging legal issues. However, Standard & Poors which also is owned by MHP and accounts for 75 percent of the company finances, made a huge profit by mid-October, 2009, due to a large number of bond issuance, that led the parent organisation to commit much higher proceeds and consequently, its share price rose to an amount, 25 percent more than what it was on the same day the previous year (Reuters, October 11, 2009).