The stock market has many different parts that make it work. To start off with, a stock is an individual piece of a company that is made public for investors to buy. The investors buy and then sell the stock for profit when it increases in value. On the other hand, a share is a percentage of a company that is bought. Whatever the company makes, the investor gets the percentage of the earnings that he bought. When certain shareholders are loyal to the company, they are rewarded with a part of the company’s profit, which are called dividends. There are various stock markets, a few examples of some of the major world markets are; NASDAQ, NYSE, and DOW J. A ticker symbol is an abbreviation for a company’s name that an investor would use to place trade orders. Each specific market has its own number of letters than can be used. For example, NASDAQ uses four letters, but NYSE uses only three letters. A mutual fund is an investment made up of various funds collected from various investors to purchase securities (stocks, bonds). When the fund sponsor raises money from the investing public, the investors become shareholders. Then the fund sponsor invests the money and gives the shareholders dividends.
Supply is the amount of goods or services that a company is willing and able to produce at a given price and certain time. Demand refers to the amount of goods or services that people are able and willing to buy at a given price and a certain time. The law of supply and demand is that as the price for a good or service increases supply increases or as the price for a good or service decreases supply decreases. And, as the price for a good or service increases the quantity demanded decreases. If the quantity demanded decreases for certain products, the value of the stock for that company will decrease as it is creating less revenue: meaning the company is worth less. In this case the supply doesn't change. The pros of investing in a stock market is that it is possible to buy a variety of assets in different sectors, so maybe one to do with technology and the other with clothing. This minimizes the risk of losing money because if one sector doesn’t do well, maybe the other one will. Also, stocks can be easily converted into cash quickly, if the investor wants to secure the money. The cons of investing in a stock market is that it can always be risky. It’s never sure if your investment will go up or down. If prices fluctuate and are unstable, there were still be some loss in money. Another example of a con is that it takes time and knowledge to pick out the right stock and the right company.
Barnes and Nobles is doing the best out of all the companies. It has a profit increase of 24.22%. The next best is Target, it has a profit increase of 14.08%. Then there is Tesla Motors which has a profit loss of 2.39. Finally, the company doing the worst is Netflix. It has a profit loss of 7.04%. I think Barnes and Nobles and Target are both doing well because it’s near the Christmas and holiday season. They are both popular stores to buy gifts from. Tesla Motors is doing okay but not too well because there is a less percentage of people that buy Tesla cars. Throughout the months I invested in different companies. At the beginning I started with Nestlé and Target having 5 stocks and UCB and Tesla Motors having 10 stocks. UCB wasn’t doing well, so I later sold 5 stocks and bought 3 stocks from Tesla Motors which on the other hand was doing better. I was losing money, so I decided to invest in another company and I bought 10 stocks from Netflix. A week later I sold all of my remaining UCB stocks because it was significantly decreasing my percentage of profit increase/loss. At the same time I bought 15 stocks from Barnes and Nobles to increase profit. Next I sold all of my Nestlé stocks and bought another 5 stocks from Barnes and Nobles. From that point on, I started increasing in profit instead of losing money. At this point I am happy with how my stocks from Barnes and Nobles and the ones from Target are doing. I would even want to buy more stocks from Target because I only have 5. I would also maybe like to sell some of my stocks from Netflix because they are not doing well with a 7.04% profit loss.
During the last few months, the best companies were Target, Barnes and Nobles. On the other hand, the worst companies were UCB (Union Chimique Belge) and Nestlé, which I eventually sold. I think Target and Barnes and Nobles are both doing well because it’s near the holiday season. Tesla Motors is such a popular and commonplace to buy things. Netflix stayed stable and went down because there isn’t a lot of increase in users/people that use it. If I were to redo this project, I would do I few things differently. First, I wouldn’t invest in UCB or Nestlé because they never had a percent of profit, they were always losing money. Next, I would start off by buying at least 30 or more stocks from Barnes and Nobles. I would do this because Barnes and Nobles was always profiting, right now it is at 20.38% of increase in profit. The stocks for this company are also very inexpensive. I would also invest in Target again, but not buy as many stocks as Barnes and Nobles. Target also had a positive percentage throughout the months, but it was less consistent with a few times going in the negatives. Now Target is at 13.79%. I would probably also try to find other companies that profited, because I only had a few that were doing well. If I were to continue to invest in this project, I would sell and buy some other stocks from different companies. First, I would start by buying 10 to 20 more stocks from Barnes and Nobles. Then, I would also buy 5 or maybe even 10 more stocks from Target. Next, I would sell all 10 of my Netflix stocks. I would also sell most of my Tesla Motors stocks. I have learned that even popular companies don’t increase in profit as much as I thought they would. I also learned that my dad’s company isn’t doing very well. Overall, I learned that nothing is for sure so maybe one week you are doing great and then the next you lose a lot of money. It’s a very risky business and that it’s hard to predict how well a company is going to do.