The effects of Honda Motors financial status on the stock market Research Paper

The effects of Honda Motors financial status on the stock market - Research Paper Example He started his company from a garage workspace. Honda went onto retirement on the year 1973 and left a man named Kiyoshi Kawashima to continue with his legacy. The company witnessed the birth of another successful corporation in Ohio called Honda of America Manufacturing. The company has also grabbed several awards in the business field including the motor trend import of cars of the year selections. Today the company with its headquarters in Japan is the world’s first and largest motorcycle producer (Carrier 1). The company, like most other companies, has had its periods of strong and weak financial status. However, during this period, with the current economic downfall, many of these companies are not getting favorable financial status. Honda motors are currently and surprisingly at the top of their game. The company recently registered a high financial status. This is, however, coursing ripples in the stock market (Carrier 2). The best and most common way of measuring a company’s performance, in the stock market, is by looking at its total returns over a given period. When a company is performing well it means that people have high expectation on the company to continue performing, in the same manner. People will then come out and start buying shares. The share price of the company in the market will thus grow and affect the whole stock market (Teweles & Edward 97). A company’s stock price is a matter of considerable concern, if the performance in the stock market is ignored, then the management and the company all bound to face adverse consequences, these may include the unhappiness of investors and the company will then experience future capital deficits (Teweles & Edward 56). . Honda has posted a profit of 234.4 billion yen, in the first reporting quarter for the financial year 2011. This represents an increase of 830% when compared to the 25.2 billion for the past financial year. In the second quarter