week 4 stock journal final
1. Record the current price of the stock for each company you selected in Week 3’s Stock Journal. You may use any price during this 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.
2. Determine the total value of your investment.
3. 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.
4. Discuss what you learned from this assignment. Do you believe this assignment will help you in the future in anyway?
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 good 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.
The selected companies are:
Indicate the amount you are investing in each company: Decide how you will divide the $25,000 across the three (3) companies; 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 provide some reason for picking that company. For example, you might invest in Ford because that company gets a lot of your money and you hear that Ford is doing well, and will continue to do well.
Walmart: $11,000 – Almost weekly I visit Walmart for shopping.
Best Buy: $6,000 – They have quality products with a great return policy.
Target: $8,000 – I like to go to Target for their clothing, purses and shoes.
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 shares you can buy. If Company 1 is selling for $42.16, then you may buy $10,000/ $42.16, or 237.19 shares. But you cannot buy a part of a share, 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.
Walmart: The current price of Walmart Share is 73.55. It means that we can buy 11000/73.55 = 149.56, i.e. 150 shares. The price is: 11032.5
Best Buy: 32.14 a share. Buying 187 shares at 6010.18
Target: 74.92 a share. Buying 107 shares for a total of 8016.44