Nortel
Stock market investors have had a tough twelve months. Share prices have fallen hard and fast, since they peaked in March last year after what seemed to be an unstoppable climb. Recently the Canadian stock market experienced a meltdown in high tech stocks. Nortel Networks is a prime example of the meltdown. Nortel Networks Corporation (formally Northern Telecom Limited) is a leading supplier of fully digital telecommunications switching systems to telephone companies, cable television companies... In September 2000, Nortel was selling shares at a high price of around $125 per share . This was the beginning of the first fall of the stock. Then in mid February, Nortel took another fall when Nortel announced they were cutting 10,000 jobs. This caused the share price to fall by 33%. From this fall, the Toronto stock exchange went down 6% and other stocks markets across the world were affected. Nortel is the highest valued company in Canada. Whenever the stock price increa!ses or decreases, the change affects society as a whole. Many Canadians invested in Nortel and lost money from the decline in the price of Nortel. This caused people to cut back on personal expenses and the Canadian economy declines. We will be examin
P also decreases. This is why so many individuals are worried about the future of the economy and the stock market. Since Nortel is the biggest company in Canada, many Canadians invested in the stock. After the meltdown of the market, many Canadians' investments decreased causing fewer people to invest in new businesses . Many individuals will try to save their money rather than purchasing luxury items. Consumers feel less confident about going out and spending money, buying a car or a house. Big corporations delay upgrading their computer systems or placing big orders. A survey was conducted on Investor Canada, asking whether the stock market weakness effected peoples spending. Out of 218 respondents, 24%said that their was a small reduction, 33% said that there was a major reduction in their expenditures . Lastly, 43% said that there was no effect. Statistics Canada provided information on private and public capital expenditures. It was noticed that in Quebec, Onta! The economy slowed down, but did not result to a recession. Many analysts expect an economic growth in the next five years. Markets around the world might be slow currently but they are slowly getting stronger. The current condition in Nortel Networks is quite weak as are the rest of the telecommunication industry. Interest
Some common words found in the essay are:
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Approximate Word count = 883
Approximate Pages = 4 (250 words per page double spaced)
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