Stock Project: Each Student Will Be Given $50,000 To Invest

Stock Project Each Student Will Be Given 50000 To Invest In Stocks

Each student will be given $50,000 to invest in stocks at the start of the semester. You will pick up to ten different stocks and decide how much of the $50,000 you want to invest in each stock. You should list the purchase price of the stock and how many shares you purchased of each company at this price. During the course of the semester you can either sell or hold your shares or buy shares in a different company. You should record the closing price of each of your stocks and investment at the close of business each Friday and whether you made or lost money in the previous week.

If there is a significant change in the price of your shares, I would like you to identify the reason(s) for this change. You will post a weekly stock report to Blackboard, and this will be due by Sunday at midnight each week. The assignment involves submitting four weekly reports, each as an attachment picture, over the course of four weeks.

Paper For Above instruction

The purpose of this stock investment project is to provide practical experience in managing a portfolio of stocks, understanding market fluctuations, and analyzing the causes behind significant price changes. This experiential activity allows students to simulate real-world investing, fostering financial literacy, decision-making skills, and an understanding of market dynamics.

Initially, each student is allocated a virtual fund of $50,000 to invest in the stock market. The strategic selection involves choosing up to ten different publicly traded companies. Students must determine the number of shares to purchase of each company at the initial purchase price, practicing important valuation skills. Record-keeping is crucial, including documenting the purchase price, number of shares bought, and the total amount invested in each stock. Accurate record maintenance forms the basis for analyzing portfolio performance over time.

Throughout the semester, students will actively manage their portfolios by deciding whether to hold, buy, or sell stocks based on weekly performance assessments. Each week, the closing prices of stocks are recorded, and students evaluate whether they have experienced a gain or loss based on these closing prices compared to the initial purchase prices. This process emphasizes understanding fluctuations in the stock market and the importance of timing and strategic decision-making.

A key component of the project involves analyzing significant changes in stock prices. When a notable increase or decrease occurs, students are expected to investigate and identify potential reasons, such as earnings reports, economic data releases, geopolitical events, or sector-specific developments. Developing this analytical skill enhances comprehension of the broader factors influencing stock prices.

Weekly reports are submitted via Blackboard, with a weekly deadline of Sunday midnight. Each report should include current stock prices, the value of holdings, profit or loss for the week, and an explanation of significant movements. This regular reporting encourages ongoing engagement with the stock market and improves analytical capabilities.

By undertaking this project, students gain invaluable insights into the complexities of stock investing, the importance of research and analysis, and the risks involved. This simulation encourages disciplined decision-making and provides a foundation for advanced financial studies. The project also fosters skills in financial documentation, critical analysis, and understanding of market forces, all essential for aspiring investors or finance professionals.

References

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