PLEASE NOTE: ONLY RESPONG TO 2 STUDENTS @250 WORDS PER REPLY.
It is important to become connected to the current events affecting corporations across the world. For this discussion forum, scan periodicals, newspapers, and/or academic journals for a current national or international event that you feel has had the most impact on corporate finance this week; that you find most relevant to your specific area of interest; and/or that impacts on your How the Market Works portfolio. There are several ways to find the news articles; however, you may access them through the Penn State Library at no cost. Be sure to browse through several sites before choosing the article to summarize.
Scan the headlines posted by your fellow students.
Pick one headline that is of interest to you.
Read the article AND the summary in the discussion post.
Share any additional insights that you may have related to that article.
student 1
Article Selection: Global M&A Industry Trends: 2024 Outlook
Link: Global M&A Industry Trends: 2024 Outlook Links to an external site.
The article from PwC, written by Brain Levy delves into the increasing activity in mergers and acquisitions (M&A) observed as businesses strive to adapt and grow in a rapidly changing economic landscape. As we enter 2024, the M&A landscape is poised to face a dynamic shift, impacted by various macroeconomic conditions such as interest rate changes, geopolitical tensions, and technological advancements.
The significance of this trend in corporate finance lies in its influence on the strategic decisions of companies globally. Mergers and acquisitions are critical tools for corporate growth, restructuring, and diversification. They can provide companies with opportunities to enhance their market share, expand into new territories, integrate new technologies, and achieve economies of scale.
This trend is highly relevant to anyone managing a “How the Market Works” portfolio, as it directly impacts stock valuations, investor sentiment, and market volatility. Companies undergoing mergers or acquisitions often experience fluctuations in their stock prices based on the perceived benefits or costs of the deal to their strategic positioning and financial health. For investors, understanding these trends allows for better informed decision-making concerning buying, holding, or selling stocks.
Reference:
Levy, B. (n.d.). Global M&A industry trends: 2024 outlook. PwC. https://www.pwc.com/gx/en/services/deals/trends.html
stufent 2
Title: Oil eases on worries about US inflation, interest rates
Link: https://www.reuters.com/business/energy/oil-prices-climb-amid-uncertainty-over-iran-presidents-fate-2024-05-20/ Links to an external site.
Summary:
The price of oil is an important indication of the health of the American economy and can have a profound impact on the finances of many corporations. The article discusses how the price of oil has remained steady by only dropping a small amount over the last few days, but news from two large producers could impact the price. These events are the death of the President of Iran, and the health condition of the King of Saudi Arabia, both these events could have a profound impact on the geopolitics in the Middle East and subsequently the price of oil. According to the article, the price of oil has proven to be resilient to geopolitical changes. The price of oil has always been an important aspect of corporate finance due to its use as fuel to transport goods and as the price changes the cost of transport increases or decreases. This price fluctuation can result in corporations earning more or less when selling the same amount of product.
