| | Last/Familiy Name : | | | | | | | | | | First/Given Name : |
| | STOCK MARKET PROJECT |
| | This project allows you to gain experience in making investment decision, which are a key aspect of personal financial planning. Assume that you have $10,000 to invest. You will learn how to monitor your stock portfolio and measure your investment performance. You will also learn about the factors that affect a stock's performance over time. You can also access a word file from our book's companion website at www.pearsonhighered.com/madura. You can retrieve the file and same it on your computer, so that you can make updates to the file as you complete the project. |
| | The investment is $10,000 for each stock. |
| | For your three stocks, please select any three that correspond to your initials. For example, if your name is "Currently A. Student," then select the first stock that begins with the letter "c"; the second stock begins with the letter "a"; the third stock begins with the letter "s". |
| | If you do not have a middle name, select the third stock to begin with the first letter of the month in which you were born. |
| | OBTAINING STOCK PRICE AND DIVIDEND IFORMATION |
| | Go to Google's financial Web site (finance.google.com) to track 3 stocks from different industries. Each stock has a ticker symbol. For example, the ticker symbol of Microsoft is MSFT. Insert the ticker symbol of the stock you select in the box that says "Get quotes". You will see the stock price quoted, along with other financial information. Notice that the quarterly dividend is listed within the financial details, if the stock pays a dividend. The dividend quoted on the Google finance site reflects the dividend provided per quarter. |
| | ENTER THE STOCK INFORMATION |
| | * The price per share of stock date is the first day of class. Tracking ends the week before the assignment's due date. |
| | | | | | | | | | | | Stock 1 - | | | | | Stock 2 - | | | | | Stock 3 - |
| | 1 | NAME OF THESTOCK IN WHICH YOU WISH TO INVEST | | | | | | | | | | | | | | | | | | | |
| | 2 | TICKER SYMBOL OF STOCK | | | | | | | | | | | | | | | | | | | |
| | 3 | PRICE PER SHARE OF YOUR STOCK AT THE TIME OF PURCHASE | | | | | | | | | $ | | | | | $ | | | | | $ |
| | 4 | NUMBER OF SHARES THAT YOU PURCHASED
($10,000 DIVIDED BY THE PRICE PER SHARE OF THE STOCK) | | | | | | | | | | | | | | | | | | | |
| | 5 | DIVIDEND PER SHARE PAID PER QUARTER | | | | | | | | | $ | | | | | $ | | | | | $ |
| | DETERMINE YOUR GAIN OVER THE SCHOOL TERM |
| | 6 | * Price per share of your stock is on the first day of class. | | | | | | | | | $ | | | | | $ | | | | | $ |
| | 7 | Total dollar value of your shares near the end of the school term.
This is calculated as the number of shares purchased (from #4) multiplied by the price per share of your stock near the end of the school term (from #6) | | | | | | | | | $ | | | | | $ | | | | | $ |
| | 8 | Total dollar amount of dividends received.
This is calculated as the dividend received per share (from #5) multiplied by the number of shares purchased (from #4). | | | | | | | | | $ | | | | | $ | | | | | $ |
| | 9 | Total dollars that you have at the end of the school term (# 7 + # 8). | | | | | | | | | $ | | | | | $ | | | | | $ |
| | 10 | Return on your investment = (total dollars based on #9 - $10,000/$10,000). | | | | | | | | | $ | | | | | $ | | | | | $ |
| | COMPARING YOUR STOCK TO THE GENERAL MARKET |
| | Go to Google's Financial web site (finance.google.com) and enter your stocks in the "Get quotes" box. A common benchmark used to measure general stock market conditions is the S&P 500 index. After you click 3m in the stock price charts in order to review a 3-month period, check the small S&P 500 box just above the chart. This allows you to compare the performance of your 3 stocks to the stock market in general. Answers must be substantiated. |
| | Did your stocks move in the same direction as the market for most of the school term? Please justify. |
| | Did your stocks perform better or worse that the market in general? Please justify. |