Thursday, November 21, 2019
Travis perkins performance in the main market Essay
Travis perkins performance in the main market - Essay Example Also, the trading volume of Travis Perkins became excessively high which established a strong performance of the company. This facilitated the inclusion of the company in FTSE 100. The investment banks invested heavily in Travis Perkins due to its strong financial fundamentals and facilitated a noticeable improvement in the performance levels of the company. This resulted in more and more investors including the private and institutional investors to invest in the shares of the company (Shapiro, 2005, p.121). As a result the share prices of the company went up, the trading volume as well as other performance measure metrics for moving into the FTSE 100 became extensively improved. The valuation of the stocks of Travis Perkins went up due to the high support from the investment bankers. As a result of all these factors, Travis Perkins could easily enter into the main index from the FTSE 250. The Board of Directors of Travis Perkins was extremely efficient in terms of strategic management, succession planning as well as risk management. The Board of Directors of Travis Perkins implemented corporate governance practices and management strategies which influenced better performance of the company. The different corporate restructuring processes followed by the management of the company resulted in the increase in the investor attractiveness for the company (Jennings, 2001, p.4). This resulted in a high volume of trading for the shares of Travis Perkins. The performance levels of the company were improved and the company became financially stronger which influenced the investors to invest their money in the stocks of Travis Perkins. The FTSE 100 includes the top 100 companies measured by the capitalization factor. Whereas the FTSE 250 include the next 250 companies, measured by capitalization in the United Kingdom Market (Fay, 2006, p.114). There may be four different stock movements between the two indexes. These include: The stocks of Travis Perkins displayed
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