This project involves your researching and investing in various investment vehicles. You will be given money to invest in the market with an opportunity to buy and three diferent kinds of investment vehicles.
Your portfolio should be presented in APA format (New Roman font, size 12 and Double space)
I. The Offer
As a student in a Macroeconomics class, the professor has offered to give you a gift of $200,000. The only stipulation is that you MUST invest them as follows.
1 You will invest AT LEAST $50,000.00 in individual stocks
- The stocks must be listed in the NYSE, AMEX or NASDAQ.
- You will invest AT LEAST $50,000.00 in a mutual fund
- You will buy $50, 000 worth of bonds
- You will deposit $50,000 into the best savings/checking account (CD, money market etc.) of your choice.
- After selecting the stocks that you want, follow these procedures:
- Fill out an Order Form, one for each stock. .
- Compute the costs of the stocks. The costs are determined by taking the number of shares you have bought and multiplying that by the purchase price. The purchase price will be the closing price.
- Add up the costs for all for purchases that you will make to get a total cost.
- The total cost for all the stocks must NOT exceed $50,000.
You will be responsible for assembling a portfolio of your stocks to include:
- Purchase date –April 23, 2016 Fill out an Order Form for each stock (use historical prices).
- SELL DATE: APRIL 22, 2018. You will fill out a Sell Form in which you will determine how much money you made, or lost, in this stock market
- Write at least a page essay about this purchase.
- Why did you choose those shares/stock?
- Use and/or explain the following terms-price of stock, price earnings ratio, dividend, and stock split
- Take us through the process of your project using the following terms-stock/shares, opening price, close price
MUTUAL FUND INVESTMENT
Select one mutual fund of your choice and follow steps A and B above
INVESTING IN BONDS
A Choose a bond or bonds to invest in limiting yourself to a total of $50, 000.
Discuss the following credit ratings, coupon rates, maturities, yields, bond funds, interest rates and bonds.
Discuss the pro and cons of different types of bonds
Discuss why you chose the one to invest in
As above (stock market) track your investment as if you started on April 23, 2016
You will open a saving/checking account (CD, money market etc.) of your choice
The account will show how much you earned as interest and new total (between the same period 4/23/2016 to 4/22/2018.
Discuss the difference between bonds and stock investment
DUE DATE: This portfolio will be due on April 30, 2018.
Turn in the final Project in dropbox where it will be checked for individual and original contributions using Turnitin
- DO NOT PLAGIARIZE!!!!!
- USE QUOTES
- CITE YOUR WORK!!!
For your Conclusion, compare investing in single stock, mutual funds, bonds and saving your money. What do you advise?
Rubrics for Project
|Each section is worth 100 points. All Sections averaged will be the final score for the project. (Numbers 100, 75, 50 and 25 represent general points available given that level of quality).|
|Organization||Information is very organized with well-constructed paragraphs and subheadings.||Information is organized with well-constructed paragraphs.||Information is organized, but paragraphs are not well-constructed.||The information appears to be disorganized.|
|Sources||All sources are accurately documented. A wide range of resources are utilized.||All sources are accurately documented, but resources are limited to a few sources.||Some sources are not accurately documented. A focus is on one or two sources.||Only a single source of information is provided.|
|Charts and statistical facts||All charts are well built and use accurate information.||All charts are well built but some use inaccurate information.||Some charts aren´t built well with inaccurate information. OR some charts are missing.||Many charts and statistical facts are not accurate or incomplete.|
|Comparative Structure||Project relies on a strong comparative structure of analysis.||Project attempts a comparative structure but fails in some comparisons.||Project has not developed a strong comparative structure.||The project uses very little logic and is not focused in comparison between countries.|
|Quality of Information||Information clearly relates to the topic. It includes several supporting details and/or examples.||Information clearly relates to the topic. It provides 1-2 supporting details and/or examples.||Information clearly relates to the main topic. No details and/or examples are given.||Information has little or nothing to do with the main topic.|
|Economic concepts and assumptions||Economic concepts and assumptions are used accurately and in a correct context.||Economic concepts are used accurately but assumptions aren´t in a correct context.||Economic concepts are used accurately but there aren´t assumptions.||Economic concepts aren´t used accurately.|
|Application of knowledge||Wide use of concepts, examples and analytical tools. A good application of the concepts learned in class, with strong conclusions.||Wide use of concepts, examples and analytical tools. A good application of the concepts learned in class, but no clear conclusions.||Some use of concepts, examples and analytical tools, and a lack in application of the concepts learned in class.||Limited use of concepts, examples and analytical tools with any application of the concepts learned in class.|
Some of the forms you need
Order Form #1
(1) # of Shares: _______________
(2) Closing price: _______________
(3) Total purchase price: _______________
Sell Form #1
Name of stock: _________________________
Final Value of Stock: _________________________
______________________ x ______________ = ________________________
(Number of shares) (Price per share) (Final Value of stock)
Net Profit or Loss: _________________________
______________________ — __________________ = ____________________
(Final Value of stock) (Initial cost of order) (Net profit or loss)
|Name of Stock||Purchase Price||# of Shares||Date: _______||Date: _______||Date: _______||Date: _______|
Your graph-should look like this
Purchase price: $56.34
Selling price: $52.99
To get ready for the project follow the following (I like that follow the following)
- Go to http://finance.yahoo.com/ or any other finance site
- The ultimate guide to stocks https://money.usnews.com/investing/investing-101/articles/the-ultimate-guide-to-bonds
- Browse through to see the various stocks available including OTC and mutual funds.
- Go to the company’s website for details about the company of your choice.
Ms. Elain Patton, the research librarian is a professor in this class and you can ask her any question, (through the class), she will be available to help you.