Capital markets and the ability to raise funds for corporate uses are essential to the U.S. economic system. For this assignment, imagine that you have $25,000 to invest in U.S. companies. You are buying used stock. The company got the money when it issued the stock originally. You will be buying it from an existing owner.
You are investing, or buying, the stock because you believe the company will make money and pay you a dividend in cash. Each share of stock that you buy entitles you to any dividend declared and a vote at the annual stockholders’ meeting.
The stock also allows you the ability to earn your money back by selling the stock. Of course, investing in stocks is risky and there is the possibility that the stock you buy will be worth less when you want your money back. The company is not obligated to give you any of your money back. You will only get your money back if another investor wants to buy your stock.
Instructions
Using the above scenario and the resources listed below, complete the following directions for your Week 3 Stock Journal entry:
Select three US companies that are publicly traded using your knowledge and experience and make sure you are practicing good diversification. Jim Cramer, Money Manager, on CNBC, plays a game at the end of his show called “”Am I Diversified.”” Check out the short clip, Am I Diversified – Mad Money [Video], to get a sense of industry diversification.
Ideas for Sources of Information: There are many ways to find such companies and the stock prices, including the New York Stock Exchange, Google Finance, NASDAQ, and Yahoo! Finance.
Describe how you will divide $25,000 across the three companies (e.g. $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3).
What’s up, every time i used to check weblog posts here in the early hours in the morning, since i like to learn more and more.
Thanks for another great article. Where else may anyone get that type
of information in such a perfect approach of writing? I have
a presentation next week, and I am on the search for
such information.
I’m not sure where you are getting your info, but great topic.
I needs to spend some time learning much more or understanding more.
Thanks for excellent info I was looking for this info for my mission.
I think the admin of this web site is genuinely working hard in support of
his website, because here every information is quality based stuff.