Examine the stock returns for both Pfizer and AstraZeneca during the Essay - 1

Examine the germinate returns for both Pfizer and AstraZeneca during the bid process and provide possible reasons for changes in legal injury on secern dates - Essay Examplet a company then price of the companys stock is credibly to rise while price is likely to fall is an expected acquisition is likely to be detrimental. Factors such as investment strategies, ownership forms, capital structures, and dividend policies that ar likely to change with an acquisition are also likely to influence stock prices (Moyer, McGuigan, & Kretlow 2008, p. 12). In addition, expressed opinions by investors can either improve or reduce share price at a meter (Khan & Zuberi 1999, p. 45) and all these could have influenced prices and return of the two companies stock.One of the key dates in the takeover period is November 25, 2013 when Pfizer informed AstraZeneca of intended takeover. Even though it was a private correspondence, it could have spread to stakeholders and a perceived lost value among Pfizers stakeholders could have triggered the observed negative change in stock price. Price for AstraZeneca however increased afterwards to indicate perceived benefits by the companys stockholders. These suggest that Pfizer offered better economic prospects than AstraZeneca did at the time, and its internal milieu could be more promising than that of AstraZeneca. On May 1, 2014, Pfizer made public its takeover interest and suffered a subsequent decline in price, which begun two age earlier, and perceived loss of advantage by existing stockholders as well as possible negative investor opinions could have caused the decline. At the same time, stock price for AstraZeneca declines and this could be a response to Pfizers price trends that made it less attractive.The fall in stock price for Pfizer continued until 7 May, a time at which the British Prime Minister expressed concerns over the takeover, and then stabilized until mid May. Price for AstraZeneca stock however remained constan t over this period. Pfizers persistence on the takeover, against its shareholders confidence could explain the fall and the