discussion
5
Investing in Stocks
In this course, we focus on the accounting rules for Publically Traded Corporations. These rules are set by the Security and Exchange Commission (SEC).
· Most large companies that we interact with each day are publically traded corporations
· Each stockholder owns a small piece of the company, has a right to vote for a company's leadership board, and can earn a dividend.
· With an easy-to-setup stock brokerage account and typically, $20-$200 individuals can become a "stockholder" of most companies.
· Many individuals, retirement funds, and businesses invest in corporations on a long-term basis to help their money grow over time.
The activity below is an educational exercise, it's not financial or investment advice.
Choose 2 publicly traded US Corporations to research briefly and share with the class.
· This company should be a company you might like, admire, believe in, and think will be a strong company in the future.
· This company should be headquartered in the United States and not currently be in bankruptcy.
Write a paragraph about each of the 2 companies to share with the class.
· Share some general facts about the company. Include its name, industry, and brand names.
· Do not copy and paste information; put the information in your own words.
· Find the company's stock symbol. Share it with the class: https://www.google.com/finance
· Assume you had bought 1 share of stock 5 years ago. How much would it have cost?
· How much was that 1 share of stock worth today?
· Calculate a simple return on investment for this company over the past 5 years
· = (Price Today - Price 5 years ago)/ Price 5 years ago.
· Multiply the result by 100 to display it as a percentage (%).
· Share your result as a % with two decimals.