The stock market is a market where companies who distribute ownership among the general public can go to have their shares be issued or traded through exchanges. It’s possible to sell or trade stocks and shares but there is a difference between the two. A stock is generally a term used to describe ownership certificates for any company. A share, however, is an ownership certificate for a particular company. If someone says someone about stocks, it would mean that they were referring to the total number of stocks they have from one or more companies, not just a single company. When someone buy stocks or shares, they get paid a dividend usually annually. A dividend is a sum of money paid by the company to its shareholders out of its profits or reserves. The most well known and major stock exchange markets have at least a thousand companies listed. The New York Stock Exchange, NASDAQ, the London Stock Exchange Group, Euronext, SIX Swiss Exchange, the Japan Exchange Group and the Shanghai Stock Exchange are only some of the most popular world markets. To identify a particular stock on a particular stock market, every stock has a ticker symbol, also called a stock symbol. These ticker symbols could be made up of numbers, letters or both combined. All ticker symbols are meant to be as short as possible and easy to be identified by traders and investors. A mutual fund is a collection of investments, like stocks and bonds, that are owned by a group of investors and managed by a professional money manager. When regulating the prices of a commodity, service or product, supply and demand is a big factor. When demand for a stock increases, the price of stocks increases as well. If there is less demand for a stock, the price will decrease. There are many advantages to investing in the stock market, but there are also risks you need to take in order to earn a lot of money. The stock market is a really good way to get money, but also lose money. There are countless opportunities, however, and so many companies you can choose to invest in. Over time, prices of stocks and shares will go up so your portfolio will be worth that much more in the future. One of the disadvantages could be that the stock market itself can be unpredictable and wild. It experiences volatile ups and downs in terms of prices of stocks and shares. It all depends on what you’re willing to risk in order to get money. The whole involvement with the stock market can also be time-consuming because making the right decisions is easier when you know what you’re doing. Research is necessary if you want to be successful. It’s also possible that the company you invested could become bankrupt. If that happens, all the stocks you bought from that company will become worthless, since if they don’t have money, they can’t give you any money as a dividend.
*Note that the re-evaluations are in Stage 1 in the spreadsheet, not Stage 2*
In my portfolio, the companies that did the best were Gartner Inc., Target, Burberry, and Box Inc. The companies that did the worst were UCB and Guidewire Software Inc. If I had to redo this project again, I would not worry so much about how much the stocks costed and instead pay more attention to how spending that money could benefit me in the future. I would not invest in the companies that I have stocks in that aren't doing well and I would remain still investing in the companies I have stocks in that are doing well. If I could continue this project, I would sell the stocks I own of UCB and Guidewire Software Inc. since they weren't doing me any good or earning any money. I have learned that the stock market is much more complicated than it looks and that there are many factors to being successful as an investor.