Description
Please follow these pointers below for a basic analysis of what you need to do :Your wealth is $10000 and you invest in 2 stocks. (invest $5000 per stock) The initial quantity for each stock will be $5000/ Price of the stock Say you are buying stock ABC for $1000 for Week 1: the quantity will be $5000/$1000 = 5 For Week 2 suppose the price went up to $1050 your new wealth or market value will be will be $1050 * 5=$5250. You need to do this for both the stocks keeping the initial quantity fixed every week.You need to report the market value for each week.
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Stock Project
“Are you the ultimate Sneakerhead? You could win $10,000 and head to LA to design a custom pair
of kicks with The Shoe Surgeon”! – Jeff Goldblum
Probably not! Assume you use your winnings – $10,000 to make a financial investment.
With your $10,000, you can buy stocks from companies. Investing in stocks means buying shares of
ownership in a publicly traded company. You can invest in stocks via a brokerage account
(Robinhood, Ally, Think or Swim, Charles Schwab, and a lot more). You have the option to invest in
individual company stocks, mutual funds, ETF’s ( exchange traded funds) . To keep it simple you will
invest in individual stocks for this class project.
Let’s delve into some insights from Investopedia about investment basics.
https://www.investopedia.com/10-investing-concepts-beginners-need-to-learn-5219500
A stock price can be volatile and gets affected by so many factors such as company’s financial status,
market trend, market competition, economic condition, and even political system. To be a successful
investor, you need to be able to develop both fundamental and technical analysis skills.
A few key elements of quantitative fundamental analysis are EPS, P/E ratio, Debt/Equity ratio and
RoE ratio. Earning Per Share is called EPS, Price to Earnings ratio is P/E, return on equity is RoE.
Technical analysis looks at charts of price data and volume data. Technical analysis is used to predict
future trends and to make investment recommendations.
If you are a beginner investor you not expected to be an expert on fundamental and technical
analysis! I will consider this class project a fun exercise for students to learn about stock trading
and how to trade and make virtual profit ( or loss )
Once you decided on your stock portfolio of 2 stocks, record your investment activity once a week
until the end of the semester.
At the end of the semester, you will be able to see how much you made a profit or how much you
lost by comparing your initial investment ($10,000) to find the final wealth.
Following is an example.
I checked the most active stocks on https://finance.yahoo.com/ and decided to buy the following 2
stocks:
1. $5000 on Apple (ticker symbol: AAPL)
2. $5000 on Bank of America (ticker symbol: BAC)
DATE
COMPANY
NAME
SYMBOL
Sept 7th
Apple
AAPL
PRICE
$176.88
QUANTITY
28.27
YOUR
WEALTH
$5,000.00
Bank of
America
BAC
$28.13
177.74
$5,000.00
YOU AN PICK ANY 2 STOCKS OF YOUR CHOICE
You have the option to sell one of your stocks and buy another, you just need to report the
transaction.
You can buy stocks in whole numbers or fractions.
DATE
COMPANY
NAME
SYMBOL
Sept 11th
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Sept 18th
Sept 25th
Oct 2nd
Oct 9th
Oct 16th
Oct 25th
PRICE
QUANTITY
YOUR
WEALTH
Oct 30th
Nov 6th
Nov 13th
Nov 20th
Nov 27th
Dec 4th
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
Stock 1
Stock 1 Ticker
Stock 2
Stock 2 Ticker
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