- Please respond to this student’s post below! These are the instructions to the original post.
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- 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 Manger, 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 athttps://www.youtube.com/watch?v=f3lDxexupcE.
- Sources of Information: There are many ways to find such companies and the stock prices, including the New York Stock Exchange at nyse.com, Google Finance at http://google.com, NASDAQ at http://www.nasdaq.com, and http://finance.yahoo.com.
- Indicate the amount you are investing in each company: Decide how you will divide $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.
- 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.
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student’s response and attached is her excel
Hello,
I chose to invest in Amazon.com (Nasdaq), Micron Technology (Nasdaq), and Johnson and Johnson (NYSE). Amazon stock is very expensive at 901.99 per share. I wanted to invest around $18000 in this stock, because the growth projections are soaring as more people move from in-store to online shopping. The amount I invested only bought my 19 shares of the stock. Next I wanted to invest in a growing tech company called Micron Technology. This company specializes in memory chips is projected to rebound from a two year slump. The stock is relatively cheap at $27.13 a share, so I bought 196. I bought a lot of this stock at a risk, but the growth prospects are high. Last I selected Johnson and Johnson because it is a stable long-term buy. I bought 20 shares at $125.72 a piece. Including trading fees, my grand total spent is $24.984.54.
fool.com/investing/2017/02/07/3-stocks-p..
nasdaq.com
