A In your own words please identify two different stock exch

A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges. B. Using the two stocks you identified, determine the free cash flow from 2013 & 2014. What inference can you draw from the companies’ free cash flow? C. Using the most recent financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.

Solution

A. Two different stock exchange in United States are New York Stock Exchange (NYSE) and  NASDAQ (National Association of Securities Dealers Automated Quotation System). Both there are one of the world biggest stock exchanges.

NYSE is a stock exchange based in New York, founded in 1792 and located on Wall Street and NASDAQ, founded in 1971.NASDAQ is the largest electronic screen-based market.

Stocks can be listed on exchange after meeting the listing criteria. But, in general companies tend to be listed on the NASDAQ. the NYSE is still the largest and arguably, and most powerful stock exchange in the world. The NASDAQ has more companies listed but NYSE has more market capitalization.

Stock listed in NYSE - Ford Motor Co.

Stock listed in NASDAQ - Apple (AAPL)

B. Free cash flow is the amount of cash generated by a business that is available for distribution among its security holders that is debt holder, equity holder, preferred stock holders, and convertible security holders and used to pay dividend, make acquisitions etc.

Free Cash Flow of Ford Motor Co. for the year 2013 is $3.85B and year 2014 is $7.04B

It indicate that company is generating enough cash and has ability to generate more cash.

Free Cash Flow of Apple (AAPL) for year 2013 is $45.5B and year 2014 is $50.14B

As Apple (AAPL) shows increase in Free cash flow which is good indication from investors point, as company has ability to generate more cash.

C. Financial Ratios of Apple (AAPL) for recent years:

Financial Ratios of Ford Motors for recent years:

Apple (AAPL):

Strengths:

Weaknesses:

Ford Motors Co.

Strength:

Weaknesses:

Challenges: