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111.docx

Guanqiang Liu

04/07/2019

BUS & 101

James P. Sharpe

The Stock Market Game Part One

1. Method of picking stocks

When we have decision to purchasing stocks, we need to control risk from holding shares. The stocks held by investors are divided into two parts: one is a radical investment for short-term operations; the other is a robust investment for medium and long-term investment. In terms of the types of shares held, investors should reduce the number of types of shares held. If there are a large number of stocks, they will often lose sight of them in actual operations, especially when the stock market changes suddenly. Reducing the number of types of shares can improve the ability to respond quickly and thus resist risks. I am interested in technology products, electronic, entertainment, drinks and daily commodities. Thus, based on the method, I choose these five parent companies to buy stocks which are Alibaba, Apple, Disney, PepsiCo and P&G.

2. Companies Research

Alibaba is a Chinese multinational conglomerate specializing in e-commerce, retail, Internet and technology, and it is the world's largest retailer and e-commerce company as well. In addition, it also be one of the biggest venture capital firms, and one of the biggest investment corporations in the world. It began from launching online shopping platform, then expanded market in the media industry, with revenues rising by triple percentage points year on year.

Apple is an American multinational technology company headquarter in Cupertino, California, that designs, develops, and sells consumer electronics, computer softwarem and online services. It is considered one of the Big Four of technology along with Amazon, Google, and Facebook.  

The Walt Disney Company, known as "Disney Company", is a diversified multinational media group based in Burbank, California. Disney was founded on October 16, 1923, originally called "Disney Brothers Cartoon Studio", established by Walt Disney and Roy Disney.

	PepsiCo is a well-known multinational conglomerate headquartered in Westchester County, USA. In 1965, PepsiCo and the world's largest snack food manufacturer and seller, Fridolin (Frito-Lay) merged.
	Procter & Gamble (P&G) is a multinational consumer daily necessities company from the United States and one of the world's largest daily necessities producers. Headquartered in Cincinnati, Ohio, USA, the company employs nearly 140,000 people worldwide. The main products are detergents, personal care products, pet foods.

According to the analysis of these five companies, I choose Alibaba, the Walt Disney and Apple as my target stock options.

3. Data Summary of Stock Shares and Value

Date

Company

Symbol

Price

No. of Shares

Value

04/07/19

Alibaba

BABA

185.49

53.91

10,000

04/07/19

Disney

DIS

115.05

86.92

10,000

04/07/19

Apple

AAPL

196.99

50.76

10,000

Data from: https://finance.yahoo.com/lookup?s=applw.

4. Conclusion

From the yahoo finance website (2019), I found that the stock price of Alibaba keeps going up from last month until now, and has 98% of 5.92 millions of volume is still buying the stocks. It also is a developing e-commence company, therefore it has a great space to expand market in the future. Disney no doubt has 69% of 4.15 millions of volume bought the stocks, and only 4% of volume sold the stocks which cited in the finance.com in yahoo (2019). Furthermore, the earnings of Apple’s stocks increased 2.38 points from 2018 to 2019 that showed in the same resource in yahoo (2019). In summary, these three companies have solid financial database, it will be a very good chance to invest money on purchasing stocks.

References

HTMW Team. (2019). Factors that Impact Stock Prices. Retrieved from https://education.howthemarketworks.com/beginners/types-of-investments/stocks/factors-that-impact-stock-prices/.

Yahoo Finance. (2019). Retrieved from https://www.yahoo.com.

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