Stock Portfolio
When setting up a stock portfolio there are things one should look into. First off, one should know what is currently happening, not only in the stock market, but in the economy as well. Researching stock indexes such as “The Dow” and the “S&P 500” will give you general stock performance. The Dow Jones Industrial Average only tracks 30 large industrial firms in hopes of getting a sense of where the market is heading. The S&P 500, on the other hand, tracks 500 stocks which may give the investor a better overall picture of where the market is going. Which ever the investor may choose to use, the idea is to find out whether stock prices are going up or down. Also important to know is state of the economy. Certain stocks tend to perform better or worse depending on the state of the economy. Knowing which stocks tend to perform well at a given state will help the investor choose which type of stock is best for the given conditions.
With that, it is time for the investor set a goal. Is the goal that of short or long term success? Is there a specific rate of return you wish to achieve? Or do you simply wish to come out ahead? Once the goals are put into place it is time for investment strategies. The investors goals will be key in helping plan the strategies for the investor.
Now that there are goals in place, it is now time to look at the many investment strategies that will help accomplish the set goals. One of these strategies is known as the buy-and hold-strategy. This strategy involves the investor to purchase a stock and hold on to this stock for many years in hopes that over time the stock price will increase. This method doesn’t require much timing of the market therefore is much less stressful making it a very desirable method. The opposite strategy is known as short term trading. This requires much attention to be paid to the “Price” and “Volume” of the stock, also knowing whether the stock is on an upward or downward trend. Another common strategy is known as short selling. This involves borrowing a stock from a broker at a given price and selling it, in hopes that the stock price will drop from the original price.
The Net Neutrality debate, or more appropriately the non-net neutrality debate, was first sparked by Ed Whitacre, the Chief Executive Officer of ATT in 2005 after his statement, “Now what [content providers] would like to do is use my pipes for free, but I ain’t going to let them do that because we have spent this capital and we have to have a return on it” (Kramer).
Stock investment means you are purchasing a share of the company, therefore the company’s success determines the value of your investment. Buying stocks is not a difficult process; clarification of some important terminology and differentiation helps gives you the foundation to start investing.
The idea of net neutrality is not something that has come out of nowhere. Throughout the history of the United States, it has been the job of the federal government to break trusts (large corporations/monopolies or near monopolies) or prevent them from forming. This became an important part of the government because it was done to protect consumers from the companies and promote competition between companies. Currently the market of telecommunications is controlled by large corporations with hundreds of small daughter corporations that they control. According to a report done by the FCC on competition in the telecommunications market, 98.8% of the wireless market is controlled by only four companies, Verizon, AT&T, T-Mobile, and Sprint (Federal
Net neutrality is the basic principle that “the government who is in charge should oblige all of the internet service providers to always and equally treat all the data that is being sent around the web and to not discriminate against any type of user or company. This means that internet service providers cannot block or slow down in any way websites or any online content.” (Gilroy 1). The main issue that will be talked about in this essay is the fact the
Net Neutrality is something that prohibits internet service providers like AT&T, Comcast and Verizon from speeding up, slowing down or blocking any content, applications or websites you want to use. Net Neutrality is the way that the internet has always worked. Without the Net Neutrality rules, companies like AT&T, Comcast and Verizon will be able to call all the shots and decide which websites, content, and applications we get to use not only that they will be able to charge us for our use.
Net Neutrality is a politically charged topic in the United States, and has been for several years now. Both sides of the issue are attempting to influence the US Federal Communication Commission (FCC), which theoretically has the power to decide the matter. During the Obama administration, the FCC ruled that Internet Service Providers must operate in a net neutral manner. Since then, the membership of the FCC has changed and now the FCC is moving to rescind that ruling. Neither position has been tested in court. So, the ultimate position is in flux…
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
It is useful to begin with some discussion of what we mean by strategy. Strategy is concerned with the achievement of goals; the most efficient and beneficial (to those creating the goals) way of achieving these, while attempting to plan for problems and events that may arise ...
Net Neutrality is the principal with all online traffic should be treated equally. This Means that if you pay for a certain speed up internet connection you should be able to use all that speed , all the time regardless of which site or services your using, this idea is important to make sure that you get your downloads quickly, your able to watch online videos like Netflix or YouTube without any problems, you can play games without being affected by lagan, you can load your favorite website without having to wait to take any once permission. But some ISP 's want to be able to charge users, online companies for what they call the fast lane, what that really means is that they will be able to slow down user , all companies connection
In order to make the most logical and beneficial purchases, it was first important that I fully understood the terminology used within the stock market. Words such as blue chip stock, mutual fund, stock splits, and ticker symbol would all prove incredibly important for me to understand if I was to do well within the game. For example, the first stock I bought, Disney, taught me the definition of a ticker symbol - in Disney’s case, DIS. This enabled me to quickly identify other stocks by their ticker symbols as well, and I soon became familiar with the term. In addition, when I bought Coca-Cola, I soon learned its financial importance as a reliable blue-chip stock, as it and other stocks like it proved profitable for me. My class was also required to buy a mutual fund, and in doing so I learned how exactly a mutual fund differs from a stock, the positives and negatives of buying one, et cetera. In addition, my knowledge of the history that places like the NYSE contains proved incredibly important towards my success within the game. Because I learned about the NYSE’s foundation and the many people who worked to make it what it is today, I was able to fully appreciate the importance of the stock market as I moved through the simulation. This, in turn, helped me take the Stock Market Game seriously and not waste any of my money on stocks that I considered
and many more. These films have shaped the behaviors and characters of both the feminine and masculine species in the society.
There is a sense of complexity today that has led many to believe the individual investor has little chance of competing with professional brokers and investment firms. However, Malkiel states this is a major misconception as he explains in his book “A Random Walk Down Wall Street”. What does a random walk mean? The random walk means in terms of the stock market that, “short term changes in stock prices cannot be predicted”. So how does a rational investor determine which stocks to purchase to maximize returns? Chapter 1 begins by defining and determining the difference in investing and speculating. Investing defined by Malkiel is the method of “purchasing assets to gain profit in the form of reasonably predictable income or appreciation over the long term”. Speculating in a sense is predicting, but without sufficient data to support any kind of conclusion. What is investing? Investing in its simplest form is the expectation to receive greater value in the future than you have today by saving income rather than spending. For example a savings account will earn a particular interest rate as will a corporate bond. Investment returns therefore depend on the allocation of funds and future events. Traditionally there have been two approaches used by the investment community to determine asset valuation: “the firm-foundation theory” and the “castle in the air theory”. The firm foundation theory argues that each investment instrument has something called intrinsic value, which can be determined analyzing securities present conditions and future growth. The basis of this theory is to buy securities when they are temporarily undervalued and sell them when they are temporarily overvalued in comparison to there intrinsic value One of the main variables used in this theory is dividend income. A stocks intrinsic value is said to be “equal to the present value of all its future dividends”. This is done using a method called discounting. Another variable to consider is the growth rate of the dividends. The greater the growth rate the more valuable the stock. However it is difficult to determine how long growth rates will last. Other factors are risk and interest rates, which will be discussed later. Warren Buffet, the great investor of our time, used this technique in making his fortune.
Movies like Disney have affected our minds at our youth though movies. In Paul Castillo’s writing, the negative effects of Disney on children, he talks about how Disney is this family-friendly corporation, yet he argue, “…are we looking deep enough?” (Castillo). This makes you think, if we are just scratching the surface, who knows what would be underneath? Castillo then goes on to say, “It is from these movies that children often get their first impressions of how men and women are supposed to act.” (Castillo). People said that the first impression is important, so the first movie or show will influence that person. Knowing this, you’ll now understand Disney’s power over everyone. Everyone, know what Disney is and or of them, their influence are targeting at a young age. Sleeping Beauty, a movie created by Disney and is mostly watched by children, is “one of the archetypal Disney princesses” and Castillo have shown an interesting point, “Aurora [, the protagonist,] is described as an extraordinarily beautiful woman…however, you will notice that Aurora’s figure is as impossible as a Barbie’s for humans…” (Castillo). What Castillo is trying to say is that children’s who see this is interpreting beautiful as Aurora, a young gorgeous woman, this will only lead them to
Financial planning involves short and long-term investment strategies. A short-term strategy is one that an individual would want to see results in one to two years. “Most investment advisors say your first short-term goals should be getting your financial house in order by eliminating credit card debt and establishing a rainy day fund” (Mutual Fund Store, 2014). Mutual Fund Store explains that intermediate-term and long-term goals includes buying a house, starting a business, and retiring according to each person’s own schedule and lifestyle. Prior to saving and investing for one’s...
The four steps that lead managers and the firm through the strategic planning process are first defining the company’s mission, then setting objectives and goals, next designing a business portfolio and lastly developing functional plans. The first step involves focusing on consumers’ needs and wants. Setting forth a market oriented mission that organizations want to reach based on consumers of the environment. After finding the mission, organizations then proceed to put together supportive objectives for every level of management to help achieve its mission. Next the company has to design a business portfolio evaluating all of its current business and future business by coming up with