Research project topic: stock market

Assignment Help Macroeconomics
Reference no: EM131043333

 

Research Project Topic: Stock Market

In this course you will be required to research the stock market and become familiar with stock market performance indicators. You will also take part in a simulation to see just how good of an investor you can be. 

It is important to note that you will be monitoring your stocks for a six-week period. You must begin now so that you will have time to complete all parts of this assignment. Plan ahead! 

The problem: You have just inherited $100,000 from your millionaire great-uncle. The stipulation is that you must invest it in the stock market until you turn twenty-one. First, you must familiarize yourself with the stock market and then decide what some good investments might be. 

Your assignment: Follow the research guidelines explained later in this section as you research and respond to the following questions. You will complete this project in four separate parts. Your findings for each part should include and address each of the proposed questions. You will submit each part as instructed on page 15. 

Part 1: 
Research: Learn the key terms and basic functionality of the stock market.

  1. Research the stock market. What is a stock? What is a share? What is an exchange? Identify the various exchanges where stocks can be traded and discuss their similarities and differences (i.e. NYSE, NASDAQ). What types of companies are traded on each?
  2. Research stock market performance indicators, such as the DOW Jones and S&P 500. What do the indicators measure? How do they help predict the performance of the market? What are their flaws?
  3. Research the sectors of the market. Identify three companies in each sector.
  4. Research companies in which you would invest. What characteristics do they have that make them good prospects? In other words, why might you choose to invest in each one of them?
  5. Compile the answers to these questions in a research report consisting of four to five well-developed paragraphs. This will be the first part of your Research Project.
  6. Make sure you give credit to the sources you use. (See information later in this section for citing examples.)

Part 2: 
Invest: Choose 5-10 companies of your choice to invest your $100,000. Now apply what you have learned about the stock market to the Stock Market Game; complete a six-week stock market game simulation.

  1. The following two websites (https://www.howthemarketworks.comandhttps://www.WallStreetSurvivor.com) have stock market simulation games and you will have the choice of which one you would like to use. You will have to sign up for a free account in order to start this project. Make sure you visit both sites and pick which one you would like to work with.When selecting your game, you will have the option to join a class or play individually. Select play individually.
  2. Be sure to read the directions on how to play the game, and go to the help screen if you ever have questions. Be sure to contact your teacher if you have any problems with the website or the game.
  3. While playing the game, be sure to stay active. You will want to check your stock's progress DAILY and follow the news to get information on your company.
  4. Give a weekly report for as long as you play the game for your companies. For at least four of your companies, write a weekly summary on the business, earnings statements, or any news having an impact on your company's share prices. Create a table with a report summary for each company for each week during the six-week period. 
  5. Include your reports and summaries in the second part of your Research Project.

Part 3: 
Draw Conclusions: After you complete the simulation, you will compile a report on your achievements of the game.

  1. Did you have overall positive or negative earnings (list the total portfolio amount)?
  2. What was your most profitable stock? If you did not have any that made you money, which company lost the least?
  3. What company cost you the most money?
  4. How many transactions did you make throughout the game, and what was the dollar amount that the transactions cost you?
  5. Did the transactions have positive or negative externalities on the outcome of your game?
  6. What was the economy's overall performance during these weeks?
  7. Write an overall analysis that discusses your stock investments as well as a general trend you might have noticed in the stock market as a whole. Your analysis should be three to four well-developed paragraphs. This will be the third part of your Research Project.
  8. Make sure you give credit to the sources you use. (See information later in this section for examples.)

Part 4: 
Make Inferences: Discuss what you have learned from this activity.

  1. Based on your findings, where do you think you might invest the money left to you by your great-uncle?
  2. Can you think of any other influences that might affect your decision on where to invest your money?
  3. Identify the things you learned about the economy by participating in this simulation.
  4. Did you like playing the game, and would you recommend it to others?
  5. Respond to these questions in three to four well-developed paragraphs. This will be the fourth, and final part of your Research Project.

 

 

Reference no: EM131043333

Questions Cloud

Why is the equator the warmest region on the earth : Why is the equator the warmest region on the earth? What happens to the regions of the earth North and South of the Tropics?
Logic behind ife investors based in the u.s. : Logic Behind IFE Investors based in the U.S. can earn 11% interest on a one-year bank deposit in Argentina (with no default risk) or 2% on a one-year U.S. bank deposit in the U.S. (with no default risk).
How might disney have had favourable initial experience : What assumptions did Disney make about the tastes and preferences of French consumers? Which of these assumptions were correct? Which were not - How might Disney have had a more favourable initial experience in France
Example of non-price competition : Spatial competition is an example of non-price competition. Specifically, in addition to the price firm charges, it also chooses a location in which to set up shop.
Research project topic: stock market : In this course you will be required to research the stock market and become familiar with stock market performance indicators. You will also take part in a simulation to see just how good of an investor you can be.
What is meant by sustainable development : What is meant by "sustainable development"? What implications should sustainable development have for investment criteria?
Ppp and changes in the real interest rate assume : PPP and Changes in the Real Interest Rate Assume that you believe exchange rate movements are mostly driven by purchasing power parity.
What reasons why culturally close countries not necessarily : Companies tend to begin their internationalization process in countries that are culturally very close. For instance, US-based companies would enter Canada and/or the UK first, before moving on to other countries. One survey, however, found that..
Average economic well-being in canada : According the World Bank's World Development Indicators 2003, Canada's 2001 GNI per capita ($21,930) was about 63 times higher than Kenya (with $350). Can we surmise that the average economic well-being in Canada was about 63 times the average eco..

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Multiple choice questions about t bills supply

Determine which of the following is not a major component of the Federal Reserve System? Kudrow stock just paid a dividend of $4.76 a share and plans to pay a dividend of $5 a share next year, which is expected to increase three 3% per year subsequen..

  Who will repay the loan

How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.

  Describe the process/approach a perfectly competitive firm

Describe the process/approach a perfectly competitive firm uses in determining it profit-maximizing level of output AND be sure to explain why the firm doesn’t have to establish a profit maximizing selling price for its product. Be specific in your a..

  What change in investment would account for this

The marginal propensity to consume and the marginal income tax rate are 0.9 and 1/3, respectively. The budget deficit is observed to increase by 90.

  Discuss the determinants of varying levels of income

Discuss the determinants of varying levels of income, the factors which determine a person's wages and if these qualifications always hold true.

  Explain why does the united states have

Explain why does the United States have an absolute advantage in both goods. Which country enjoys a comparative advantage in food.

  Economic statements related to market structure and pricing

True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences).  You can also use diagrams if they are helpful. Each correct answer is worth.

  At which point do you reach equilibrium

At which point do you reach equilibrium. Also explain why is that considered equilibrium.

  What can the fed do to combat inflation what can the fed

What can the Fed do to combat inflation? What can the Fed do to combat recession? How specifically does the Fed make these changes (mechanics)?

  Pricing and output determination

Pricing and Output Determination in different market conditions : Monopolistic , Monopoly and Oligopoly Market

  Demand for potatoes is given by qd 109p withq

demand for potatoes is given by qd 109p withq measured in tons. the supply of potatoes is given by qsp2.a

  What are the financial markets

What are financial intermediaries? How do these intermediaries function in the economy? What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd