Pick 4 investments
1. Large Stock - This should be an easy one. Any company we have heard of that is publicly traded.
2. Small or medium company stock (must be public). There are plenty of companies here. Find a small or medium one publicly traded. There are plenty of small public companies right in Columbus. You can see them in the Dispatch. Or do some google searches. You can find one. Contact your instructor if you are REALLY stuck.
3. Mutual Fund - Again search and you will find.
4. Something else. A bond, or another mutual fund or stock. You can try a derivative, preferred stock, really anything goes here.
For each of these, give some information. Use Word or Excel to create a document.
Part 1- Name the four investments with specifics. Name the industry of your companies, and the type of mutual fund. (see chapter 4: growth, balanced, etc)
- You have $1000 to spend on each. So define "2 shares of xyz stock at $500 each". Spend UNDER $1000 on each, so if IBM is selling at $101 per share, you can buy 9. (You won't be judged on returns.)
- For ONE of the stocks, order the ANNUAL REPORT from the company.Some will send one, some will refer you to the web site. Send the address of the web site, or include a copy of your request in your submission. You will need to use this in a future assignment.
Part 2 - Assume you will invest $1000 in each of the above 4 investments. What return do you hope to get?
- Assume you are "buying" on the first day of the term and and "selling" on the last day.)
- For a stock, assume you will collect a dividend this term if the stock has been paying one.
Part 3 - Talk about the risk level of these investments. Choosing a risky stock, fund or "something else" is fine. Compare the 4 that you choose against the overall market and each other.