Stock Market Paragraph
A stock is a share between different owners of a company. A stock is represented by the company’s earnings and belongings. The reason why a company would want for an Investor to buy part of the company is because the most important thing for a company is to see an increase in the income. To make sure it happens they raise it by selling a part of their company or they can borrow it from an investor which is currently called stocking/sharing. Lot’s of people get confused from the difference of a stock and a share. If you buy a share of a certain company you are buying part of a company but when you own more than one share in different companies these are called stocks, since “ stocks ‘ is referred to different amount of shares. A shareholder is when you are one of the many owners of a company and you have a usually small claim to anything the company owns. A dividend is a payment made by a group of companies, also called corporations to shareholders. All of these companies usually have a ticker symbol also knows as a stock symbol which is an arrangement of characters which are usually letters which represent a security which is listed on an exchange.
A very big part of a company's money are the mutual funds, mutual funds is an investment which is made of lot’s of funds collected from many investors so that they can invest hoping that the money managers which work for mutual funds will try to increase the gain. Supply is a very important economic concept, it shows the total amount of a specific product that is available to to consumers. It can relate to the amount that is still available of the product and give the specific prize for it. On the other hand there is a demand which describes a consumer’s desire of the product and how much they will pay for a service or a good. The way that supply and demand affect the stock market is that when demand for a stock increases its price also increases while when stock prices tend to fall when there is a lot of supply and less people demand products. In conclusion stock markets can have a lot of pros for example : getting incomes from dividends, long term growth and getting the choice on what type of companies you want to invest in but on the other hand there are also the cons which would be getting into a bank crisis and of course taking a lot of risks.
Stage 1 - Initial Research
Stage 2 - Invest
Stage 3 Reflection : The companies that are doing the best at the moment is Luxotica which made RayBan. Another company who has never had a loss is PVH ( Calvin Klein ), even though at one point of my stocks were going down this one never went through a loss,I am not quite sure why it is going so well since it's a normal glasses company. Starbucks has also been doing good and I think the reason for that is because they launched the new drinks ( pumpkin spice latte ) which is one of the most attended drinks at Starbucks and they’re also designing the new Christmas Cups which is making them increase their profit. Unilever and Philip Morris are doing the worst so I decided to sell them even though from one day to another all my best stocks went down. I sold all my stocks that were decreasing in my portfolio and kept my account without purchasing or buying anything for 2-3 weeks, I gained money and from being 44th in the class I became 21st just by not doing anything. I want to make sure that all of my stocks go up and if I feel like a stocks will decrease the money I will be able to sell the stock in time.
Stage 4 - Final Results
Final Reflection : The companies that worked the best in my portfolio were LUXOTTICA and STARBUCKS. I think STARBUCKS is doing very well in their stocks because of their new drinks that just came out like the pumpkin spice latte and for Luxottica it’s because they are having a lot of sales at the moment. Alliance Data is also doing very well, it’s a publicly traded provider of loyalty and marketing solution but the reason why their stocks are good is because they have a very big amount of consumer data. My worst company was PVH which is Calvin Klein. I think that there was no increase because they company doesn’t make any promotions and so people get bored by it. If i could redo this project I would stick to 1-3 companies for the whole time and not change a thing because I realized that by not changing much you actually increase. I would have deleted all the stocks that I think would have gone down before they actually do and I would have kept the same ones throughout. I would also have been more careful at the beginning because I wasn’t cautious and I kept buying and selling companies however and whenever.
I would have still invested in LUXOTTICA and STARBUCKS. I bought so many companies without knowing anything about them and sold them right after, for example ; tesla, apple, philip morris, gopro, ryanair and more. I would have invested in Adidas because at this moment even though it is a very big company they are having a lot of promotions and limited edition products which pressure the buyers to buy the product and that would have made an income increase. I wish that I would have had enough increase of money so that I could remedy on the profit that I lost due to my unexplained choice of buying and selling random companies. I think that this project was kind of challenging because a lot of organization and detail was needed and to have a good increase in the stocks you really needed to understand what was happening ad how it functions behind all of it.