Stock Market Research
There are companies that basically sell a part of a company which is a share, and when you buy shares you have a part of the company and you get income from that share. If the company does well you will gain profit and if the company does poorly you will lose profit. A share of stock is literally a share in the ownership of a company. When you buy a share of stock, you're entitled to a small fraction of the assets and earnings of that company. Assets include everything the company owns (buildings, equipment, trademarks), and earnings are all of the money the company brings in from selling its products and services. Why would a company want to share its assets and earnings with the general public? Because it needs the money, of course. Companies only have two ways to raise money to cover startup costs or expand the business: It can either borrow money (a process known as debt financing) or sell stock (also known as equity financing). The disadvantage of borrowing money is that the company has to pay back the loan with interest. By selling stock, however, the company gets money with fewer strings attached. There is no interest to pay and no requirement to even pay the money back at all. Even better, equity financing distributes the risk of doing business among a large pool of investors (stockholders). If the company fails, the founders don't lose all of their money; they lose several thousand smaller chunks of other people's money.
Stage 3 Reflection
Which companies are doing the best in your portfolio? Which are doing the worst?The ones that have been doing best was nvidia and Tesla motors but I sold them before the price went down. Other investments I’ve done are doing garbage. Others like whirlpool corporation are doing quite bad. Can’t check on my first profile since I can’t log in to check the percentages. All I know is most of the stocks I have invested in my previous account are going down. What reasons can you identify to explain the performance of each of your investments? Nvidia has continuously been increasing in price and that’s probably since they are one of the main GPU manufacturers with their GPUs being the most popular in the survey meaning they’re doing well. Some others were constantly going down or up and not having a stable price. Also 2016 is the year they released their brand new pascal GPUs so that could be the reason it’s going up quickly. What are some of the changes you have made to your portfolio? Did you buy or sell any stocks? If so, please explain the reasons why. I’ve bought and sold stocks quite a few times. I sold nvidia since I wanted to sell it before the prices went down. Other ones I sold were doing so poorly that I sold it before it would go even more down. At this point as you continue to invest in this project, what would you like to change about your current portfolio? Why? I would like to invest in companies that actually make profit.
Stock Market Final Reflection
It was a fun project and in my new restarted account I profited although I lost quite a bit from my previous account. My final ranking was 29 which was below average but I did learn quite a bit of stuff so in conclusion this was a good project.