We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Was Mike Ashley smart by floating shares into the Stock Market? Essay Sample

essay
  • Pages: 2
  • Word count: 467
  • Rewriting Possibility: 99% (excellent)
  • Category: market

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Introduction of TOPIC

On the 28th febuary 2007, Mike Ashley became the 25th richest person in the UK, this is because he made 929 million in one day floating 43% of Sports Direct. He remained the Executive Deputy Chairman as he still had a 57 per cent stake within the business.

Many people believe that it was the wrong decision to float his shares onto the Stock market as they believe it was not right for the business plan, reasons behind this were that Sports Direct shares fell by 22% within the first 3 months and then halved within half a year after the company announced that it had a major profits warning.

Another reason why people believe that it was not smart for him to float shares into the Stock Market was because sports Direct unveiled a 70% crash within its first half year profits which plunged from 70 million to 20 million, this then caused the shares to fall ag

ain reducing it to a 67% difference from when they first started trading on the Stock Market.

Sorry, but full essay samples are available only for registered users

Choose a Membership Plan
style="text-align: justify;">There was also romours reccuring that Mike Ashley was to try and make Sports Direct a LTD again after more worrying figures were released/

Although there has been significant reasons to why floating shares onto the stock market was the wrong choice to make, there is also reasons why it was good from a businessmans point of view.

firstly, Mike Ashley made 929 million on his first day on the stock market which allowed him to buy shares in worldwide companies such as Adidas, Lonsdale, Blacks and Newcastle United football club, this would mean that he would be making more money each year.

another reason why it was smart that he floated the shares onto the stock market when he did is that he may have predicted that the company was not going to be able to expand after he did this, so by doing so meant that he was able to make much more money through the company this way.

Mike ashley then went on to sell off his current shares in Adidas which made him a 29 million profit in just 8 weeks, this proves that he is a smart businessman and knows when to trade shares. 4 months later shares in adidas fell.

The last reason why i beleive that it was a smart decision floating the shares onto the Stock Market when he did is because we are now living in a recession which means share prices will only be shrinking and every day and people are going to be less inclined to buy into a business.

We can write a custom essay on

Was Mike Ashley smart by floating shares into the ...
According to Your Specific Requirements.

Order an essay

You May Also Find These Documents Helpful

So you want to set up a...

In modern society small grocers are not very common, big shops and brands like Walmart or Tesco are taking over the world. The essay Once Upon a Shop is written by Jeanette Winterson, who is a British writer. The essay was first published the 13. June 2010. The essay is about Jeanette Winterson and her little vegetable shop, which is located in Spitalfields in the east end of London. Jeanette Winterson tells in the essay how she opened a vegetable shop instead of being hired in a cooperative brand. She also tells about her passion for running her own shop, and about the challenges and he possibilities by running her own shop and the fact that we still need to be independent. The author Jeanette Winterson had been offered to sell her building to a big coffee company, but she rejected the offer because of what she felt was wrong...

Red bull market

Red bull entered the US market in 1997 because it was a politically stable developed country. The company used a “cell” approach to divide the key markets into geographic segments rather than attempting a nationwide launch. The company’s first test market was Santa Cruz, a beachside town that was known for its active lifestyle through skateboarding and surfing and the University of California Santa Cruz. The target population in Santa Cruz represented a good audience for the product as they were mostly sport enthusiasts and university students. From Santa Cruz, Red Bull moved into the nearby urban market of San Francisco, and then to Venice Beach, a trendy beachside city near in Los Angeles. brand in Maryland, New Jersey, New York, Pennsylvania, and Virginia. When Red Bull entered a cell, it initially targeted high-end nightclubs, bars, plus exclusive health clubs and gyms in order to reach the trendy and active...

Two types of markets

Prices in today’s market often fluctuate based upon two main reasons that we know of; supply and demand. But have you ever stopped to take a more in depth look into other reasonings behind price increases or decreases of firms. Firms do not just randomly decide to decrease or increase their prices of their products or services regularly. Barriers to entry are a big contributor to the impacts upon market outcomes. Entry of firms into the market is an important part of the economy. New firms enter the market with new products and production processes frequently. How does the economy control the number of firms within specific markets? By having barriers of entry to help deter competitors. A barrier to entry can be described best as an economic factor that causes a roadblock in the market, production process or supply chain that discourages other competitors from entering the same market space...

Popular Essays

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?