Discuss the below:
Record the current price of the stock for each company you selected in Stock Journal. You may use any price during week (e.g., day one price, the opening, the low, the high, the close, or any price you find when you check it during the day). Using a MS Excel spreadsheet or MS Word document, put your Week 8 and Week 10 stock prices side-by-side, to show the comparison.
Determine the total value of your investment.
Provide your final opinion / assessment of your investments. Did you make money or lose money? Discuss your results and, based on hindsight, describe what you would do differently.
Discuss what you learned from this assignment. Do you believe this assignment will help you in the future in any way?
1. Indicate the companies you are investing in Select three (3) US companies that are publicly traded. Please use your knowledge and experience and pick, as many stocks as you'd like. Lastly, make sure you are practicing proper diversification. Jim Cramer, Money Manager, on CNBC, plays a game at the end of his show called "Am I Diversified." Check out a short clip to get a sense of industry diversification at https://www.youtube.com/watch?v=f3lDxexupcE.
2. Indicate the amount you are investing in each company: Decide how you will divide $25,000 across the three (3) organizations; e.g., $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3. You decide the amount you are investing in each company. You do not have to provide any analysis to justify your decisions. You must only give some reason for picking that company. For example, you might invest in Ford because that group gets a lot of your money and you hear that Ford is doing well, and will continue to do well.
3. Indicate the number of shares you are buying, and the price of the shares you are buying for each company: Once you decide the companies and the amount for each company, determine how many stocks you can buy. If Company 1 is selling for $42.16, then you may purchase $10,000/ $42.16, or 237.19 shares. But you cannot buy a part of a percentage, so you decide to buy either 237 or 238. In this example, you buy 237 shares, at $42.16 per share, investing $9,991.92. You won't be able to buy exactly $10,000, or $5,000, or $25,000, but it will be relatively close.