The purpose of this project was to get some exposure to the stock market and get a sense of how it works. As finance majors, the stock market encompasses a considerable amount of the material covered in our emphasis, and having a project in which we are free to pick and trade stocks can certainly add value to the knowledge gained in our courses. Aside from the fake $100,000, everything very was similar to a real-life platform; the ticker symbols, gains/losses, and even the trading fees. Such realistic simulation gave us a chance to use some of the platform features we’ve been learning about throughout the semester such as limit & stop orders and trading practices such as short selling & buying on margin.
For my stock portfolio I followed a passive management strategy rather than an active management strategy. The reasons for such strategy included lack of time to follow the stock market and analyze each and every stock within my portfolio, and most importantly because of the efficient market hypothesis. As it has been made very clear in class and in our textbook, those investors engaged in an active management strategy have not been successful enough to justify the resources invested. Rather than waste my own resources, I chose to use those investor’s experiences and follow a passive management strategy.
When I first created my portfolio, I included five stocks: General Mills (GIS), Mattel (MAT), Nike (NKE), Sony (SNE), and United Airlines (UAL). Given that we are in the fourth quarter of the year, known for the holidays and spending, I decided to look into the stocks of companies that tend to do well during this season of the year. Thanksgiving and Christmas are known for being holidays in which food plays a big role, which is wh...
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...dicts sales of $602.1 billion for Christmas; it is safe to say that Sony (SNE) will be one of the tech giants who will be seeing their revenues increase. On November 15, the much anticipated PlayStation 4 hit stores and broke records for Sony (SNE) by selling one million systems within 24 hours just in the U.S. and Canada while Microsoft’s Xbox One sold the same amount within the same amount of time but in thirteen counties; clearly a better debut for the Japanese gaming console. Up until December 1, Sony revealed it had sold 2.1 million consoles; such initial success has made Sony (SNE) set a conservative goal of selling 3 million systems by December 31, and 5 million by the end of the first quarter of next year. While both gaming systems are selling well, PS4 has taken the lead; proof of that is the fact that Amazon has Xbox One in stock while the PS4 is sold out.
ever invested money in stocks or maybe received savings bonds as a gift? Those are just a few different types of investments that could potentially help with future plans. It is very smart to start investing money at a young age to prepare for the future and there are many different types of investments that individuals can use to achieve future goals. According to www.fool.com, If you were to invest one hundred dollars as a fifteen-year-old and receive a ten percent investment rate every year, at
methods are stocks and bonds. Stocks, also known as shares, are units of equities in a company. When a person purchases a stock they essentially own a share in a company. This does not mean shareholders actually run and operate the company, but they own assets that the company uses to become successful. Stocks are bought in sold in exchanges, such as the NASDAQ and New York Stock Exchange. The cost of stocks solely depends on the company's value in which you are purchasing stock in. Stock price
Investment Risk in Stock Market Securities Introduction: Stories of people making fortunes from the securities market have enticed many others into risky investments. Congress created the Securities & Exchange Commission (SEC) to protect investors. Many corporation managers became greedy and made self-serving decisions that created the principle-agent problems. The solutions for these problems lead to more unethical behavior from management. The creative use of financial statements even tricked
$3.30 in total, which is unfortunate as the first two days I managed to earn a fair amount of money considering the limited time period we were given. I feel that if we were given a longer period to record the stocks our results would have been more significant. Stock Investment Analysis: How These Companies Earn Revenue: Canadian Tire: Canadian Tire makes its revenue by acting as a retailer similar to Walmart and other superstores, by specializing in Home Improvement and Tools, Canada’s
the local areas around Roger, Arkansas. This would play a key role in how his business skyrocketed into success. Walton’s family has led Walmart into even greater success ever since his passing. The origins, popularity, and health of the Walmart stock are very important aspects to look at when looking at whether to look at investing into Walmart or not. The Samuel Moore Walton legacy began in 1918 on a farm in Kingfisher, Oklahoma. The family moved to Orlando, Florida around 1921, when the family’s
their Operating margin profit. Their Return on Equity has gone from 30% to 45% because they are using their investments to grow their earnings. While the ROE is related to debts, it is important to understand that Apple has primarily short term debts which the company pay off quickly, which is why I am making the recommendation to invest in Apple’s bonds. If an investor already owns stock in Apple, it would be a wise choice to hold on to it. Apple’s growth in their net profit area is due to them
chose to invest are either in single stocks, or mutual funds. Different investments work for different people. Some people like to be more risky and others like to take the safer rout. Which one are you? These two investments vary, and like every thing else in the world, both have pros and cons. We will look at both the pros and cons of each, and you will find out which is right for you. First, we will take a look at single stocks. When one buys a share of stock in a company, they are buying a part
Assets Be Allocated? The first step in any investment strategy is to figure out the proper way to allocate the portfolio. Initially, investors should calculate the amount of time that they have to grow their investment, their future capital needs, the current funds that are available and their age. They also should consider their personal tolerance
business economics. The two concepts go hand in hand with the other since return reflects the risk that the entrepreneur had taken (Brandy, 2012). Additionally, the entrepreneur takes a risk depending on the return that he/she intends to make from the investment. It is not all times that greater risks lead to greater returns. Therefore, the statement greater risks lead to greater achievement or returns and vice versa are not always true. However, there is a positive correlation between risks and returns
The benefit of an investment is called a return. Returns provide a regular income depending on the type of investment. For long-term investments, it provides healthy long-term returns. Inflation can reduce the value of money.
financial product has its special features. Some of the investments have low risks and thus the return is also low. Others have high risks but offer you high potential returns. Returns are the gains or losses from security in a particular period and are usually quoted as a percentage (Carpenter, 2009). The kind of returns investors expect from capital markets are influenced by some factors like risk. The risk is the chance that an actual investment return will be different from expected (Bouleau, 2011)
There are so many different investment strategies, investment options, investment jargon, and investment ideas, that a novice investor can become confused and discouraged before ever getting started. Before an individual can delve into beginner investing strategies, I think it’s important to define what an investment really is and the benefits of investing properly and strategically. An investment is any vehicle into which funds can be placed with the expectation that it will generate positive
independent investment research to individuals, financial advisors, and institutional advisors(Ferrell, Ferrell, & Hirt, 2015). Although they provide these services to financial and institutional advisors, their main focus is on individual investors. Mansueto found that the average investor often finds investing very confusing because there are a wide variety of investment choices. There are three types of investment choices: mutual funds, stocks, and bonds. Each of these three types of investment have
Investment Policy at the Hewlett Foundation This case examines investments by Hewlett Foundation (HF). William R. Hewlett, his wife Flora, and their oldest son, Walter, established the foundation in 1966. At year-end 2004, the foundation was among the eight largest U.S. private foundations by asset size, with $6.4 billion. HF consists primarily of HP and Agilent 3 stock. The foundation focused on six grant programs, which are: conflict resolution, education, the environment, performing arts, population
methods are used to determine if a project is acceptable or not. For example, the payback method, net present value, and internal rate of return. Simply put, the payback method is how many years will as it take for a firm to recover the original investment. The net present value method takes into account the time value of money by finding the value of yearly cash flows. The internal rate of return describes when the discount rate equates the present value of a projects expected costs compared to the