Step 1: Begin reading the business news immediately (see my newsletter earlier in the semester about business publications), and start thinking about six public companies/corporations (they sell shares of stock to the public) that interest you and those that are in the news on a daily basis. It can be products you know and love. Edgar database of public companies.
List of Fortune 500 companies. Best 50 stock picks from the billionaires. Step 2: Using an Excel Spreadsheet (or a calculator), record the six companies and the current price per share of their stock. Then figure out how many shares of each you will purchase to spend the entire $100,000. Don’t worry. It won’t be exactly $100,000, and there will be some rounding, but get as close to it as you’re able. It helps to plan your share purchases in advance so you’re not trying to figure that out on the website when you login to register and spend your $100,000. I’ll provide a spreadsheet you can use. Help:
Understanding stock quotes. How to read a stock quote. To lookup a stock price, you may need to know its unique identifier, called a ticker symbol, so read this. Step 3: BEGIN EARLY! By 10 AM October 9, or well before, please register for this assignment using this link and “purchase” (it’s not real money) your six stocks. You must use the link provided so that you will automatically be registered under the contest name , FALL2020CCSF. DO NOT forget your username and password. Unfortunately, I cannot help you with that if you do. Helpful information for this step (there are many resources on the howthemarketworks.com website under :
Help: How to navigate the website. There is no maximum amount (a position limit) that you must put in any one stock. You can invest most of your money in say, Amazon, and the rest in the remaining five stocks. It’s up to you.Write-up Requirements IMPORTANT: Please use the format provided. Do not use your own format. Single space and make font small (10 point) to fit on a page and within the table (grid). See the examples online. Get some help formatting if you’re not sure . Yes, writing is part of your grade, so please carefully edit for grammar and typos. They are important if you’re shooting for full points. For full credit, do not rush through each answer. Spend many, many hours thinking each through each question.
Expand, elaborate, develop, think through and answer each answer very thoroughly and with many paragraphs – not just a few sentences. This is where most students fall short. For full credit, please include (copy and paste) each question and place before your answer. Points will be taken off if I don’t see each question written out prior to your answer. You will email this assignment to me, and those directions will follow.
1. (10 points) Please think through, do not rush, and plan and answer each question (a through c) with 2-4 paragraphs, to include much critical thinking, thought, and detail. a. What did you learn from this assignment? b. How would you describe the experience? c. What type of emotions, if any, did you feel during the assignment?
2. (10 points) For each of the six stocks you chose to purchase, discuss in detail (fully develop each with 2-3 paragraphs) the basis of your decision i.e., why you decided to purchase each stock. Carefully research each company and formulate a well-planned and thought out answer. The more you know about a company, the more you can also decide why the purchase made sense (or not)…. a. Why you purchased stock A b. Why you purchased stock B c. Why you purchased stock C d. Why you purchased stock D e. Why you purchased stock E f. Why you purchased stock F
3. (10 points) Please spend some quality time thinking about each of these questions as you complete this assignment. For full credit, write a minimum of 2-4 full paragraphs for each question. You will not be graded on whether you gained or lost money over the five-week period of time!
a. What was the overall result (gain or loss) of each of your six stocks from the (beginning 10/12 though 11/13) of the assignment for each of the five weeks of the assignment? Simply record the gain and/or loss for each of your six stocks from the start of the assignment to the finish.
b. What was your expectation of the outcome of your six stocks over the five weeks, and did it change from week to week? On an ongoing basis (weekly), spend a lot of time thinking about this one and if it makes sense, record your thoughts on this weekly).
c. What would you do differently? For full credit, write a few paragraphs on this one.
d. What type of investor do you think you are? (Research different types of investors and see which one might match the type that you are). For full credit, carefully and thoughtfully construct 2-3 paragraphs and think this one through very thoroughly. A few sentences just won’t cut it. Brevity doesn’t work for this assignment, valued at 20% of your grade, so consider giving this the time it deserves.
e. What type of investor do you aspire to be? For full credit, spend a few hours reading and doing some research about different types of investment strategies and types of investors (active, passive, bargain hunter, retirement, etc). There is no right or wrong answer. For full credit, carefully think through and construct, edit, and write 2-4 paragraphs and spend some time really researching this and thinking this one through. 4. (35 points) Next, WEEKLY over the course of the five weeks (beginning October 12 ), you will research news articles about each of the six companies you chose. Google has a “news” option whereby most recent news events of a company search are listed. See the newsletter I sent you the first few weeks with business publications. You can do this on the same day each week if that works for you. Many students choose Friday at the end of the day, or over the weekend. a. For each of the five weeks (using the table/outline below – and please refrain from using your own), discuss all news events which occurred. Please do not simply copy and paste news story titles – that doesn’t count.
Summarize (in your own words) the important news events of the week. I realize some weeks will have less news than other weeks. Don’t worry, but do try to choose a company that is “in the news” Do not stress. It’s not perfect. Nothing is. 5. (35 points) In your own words, please discuss your own interpretation of the impact, if any, of each week’s news events on the price of each of your six stock picks.
This part of the assignment is important. What are your thoughts? This is the question where many fall short. Please read the examples (I will provide later on) of student work very carefully. This will give you an idea of how to answer these questions. You will need to figure out and think through (there’s no right or wrong answer) whether you think the news event that week had an impact on the stock price/performance.
a. For each of your six companies, did the news events have an impact on the price performance for this week?
b. Discuss (in detail) how, why or why not. There is no right or wrong answer here – and what I am looking for is your own interpretation and thoughts. Please do NOT copy and paste something a stock analyst has written. However, you can read the opinions of others. That’s fine. Just avoid plagiarism. It’s grounds for an automatic zero. IMPORTANT: For questions 4 & 5, USE THIS TEMPLATE (see attachment) with any 10 point font. Please don’t use your own format. This format just makes it easier for me to read over 150 of these. Thx. Week 1 – 10/12 to 10/16: (These are sample stocks) Fill this in with your own stocks.
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