Global finance Essay Example | Topics and Well Written Essays - 500 words

Global pay - Essay ExampleThe stock price of Lloyds Banking Group (UK LLOY) has dropped by as much as ?10 per sh atomic number 18 over the past 2 months. Ignoring the minor increase in the stock price during the outset week of July, this decline has been gradual over this period. The share price has dropped consistently during recent months due to a number of reasons that will be elaborated to a lower place. These trends also fall in line with some of the observations make during the beginning of the sample period based on macroeconomic trends in the UK and Europe in common (Desai, 2011). Based on information on other players in the banking sector, Adams (2011) says that most banks have been performing below their book values due to the longstanding negative sentiment in the financial markets over the constancy of these banks. At a time when the world is just starting to recover from the 2008 global financial crisis, investors are reluctant to place their money on this sector, e specially in favor of the bigger banks (Brown, 2010). Thus, a major factor inhibiting the growth of the share price is the current sentiment over liquidity concerns and debt quality indoors banks. Thus, the current stock scenario reflects the short term outlook of the investors.