Assume that you have $10,000 to make a financial investment.
With your $10,000, you will buy stocks from companies.
As we know, a stock price is very volatile and gets affected by so many factors such as company’s financial status, market trend,
market competition, economic condition, and even political condition. During the first quarter of 2020, we have witnessed that
COVID-19 Pandemic affected stock prices such as spike in stock prices of medical and pharmaceutical companies and huge drop
in airline/travel related companies and retail businesses. Therefore, you need to analyze these factors before you make decision
where you invest your money.
In addition, you also need to remember that splitting your investment into several different companies is much safer
than putting all your money into one company.
Once you made a decision, record the stock prices you invested once a week (you can check it on Nasdaq website) 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 the final wealth.
Following is the example (Pick at least 2 companies):
I decided to buy Apple and Microsoft stocks with my initial $10,000 budget.
I checked out Nasdaq website (www.nasdaq.com) and it showed Apple stock was $129.19 and Microsoft was $217.37 per stock
as of January 11th (you can simply type the company name on search window on Nasdaq website but not all companies are
listed).
With $10,000, I can buy 38 Apple stocks ($4909.22) and 23 Microsoft stocks ($4999.51). (you will have little left over money
but just ignore it)
Over the next 3 months, I am going to record the stock prices of Apple and Microsoft I get from Nasdaq website once a week.
Remember! The quantities you initially bought won’t change over time BUT the prices will.
I will do every Tuesday on the following spread sheet, but you can pick any day of a week. Just check out the website once a
week and record the stock prices until the 3rd week of April. You can submit your project to D2L once a folder is set up.
DATE COMPANY NAME SYMBOL PRICE QUANTITY WEALTH (P*Q)
01/12 Apple AAPL $129.19 38 $4909.22
Microsoft MSFT $217.37 23 $4999.51
Your wealth $9908.73
01/19 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
01/26 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
02/02 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
02/09 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
02/16 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
02/23 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
03/02 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
03/09 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
03/16 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
03/23 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
03/30 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
04/06 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
04/13 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
04/20 Apple AAPL ? 38 ?
Microsoft MSFT ? 23 ?
Your wealth ?
Initial investment: $9908.73
Final Gain/ Loss (compare the wealth of the final week to the initial investment): ?
Sample Solution
