Kreidle, John R.||Olive, Garnet D.
M.S. (Master of Science)
Department of Finance
The purpose of this study was to examine the price trends of large industrial corporations that incurred losses in the years 1955 through 1965. The companies selected for study were based on Fortune's classification of the 500 largest industrial corporations. Data was compiled primarily from stock prices in Moody's Industrial Manuals. Other financial publications also were used to complete the compilation of the data. From the data obtained, the arithmetic mean and medians were calculated to measure the common stock price trends and the dividend yield trends. The following conclusions were reached by the writer. 1. The seventy-two companies selected in the study experienced a significant degree of price appreciation when considered as one large group. 2. The group of selected companies grew greater in price than did "Moody's Industrial Average." 3. Companies in the study that incurred losses in 1955, 1956, 1957, 1960, and 1964 had greater price appreciation than did companies in the study that incurred losses in the other years. 4. Certain industrial groups of the selected stocks experienced larger gains in price appreciation than did the other industrial groups. Stocks in the automobile industry, the electrical and electronic industry, and the machinery and equipment industry had the greatest price appreciation. On the contrary, stocks in the meat packing industry and the steel industry experienced price depreciation. 5. Although the dividend yields were generally small, the dividends contributed an additional return to the total investment return. 6. Improved operations, diversification, upturn in the business cycle, lower costs, increased product demand, and new government contracts were major reasons for the turnaround of the selected companies.
Bleed, Ronald D., "A study of the common stock price trends of a selected group of companies that incurred losses" (1967). Graduate Research Theses & Dissertations. 703.
x, 103 pages
Northern Illinois University
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