Research Paragraph 1: The stock market is the market in which stocks and shares of publicly held companies are issued and traded through exchanges. Stocks is a general term used to describe the ownership of any company, in general, and "shares" refer to the ownership of a particular company. Some examples of major world stock markets are the London stock market, the New york stock market and the Frankfurt stock market. Then on each stock market there are ticker symbols or stock symbols. These are an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol or ticker symbol may consist of letters, numbers or a combination of both. Some ticker symbols that are on the London stock market are for example RBS for the Royal bank of Scotland and BARC for Barclays. Stock markets are overall well organized.
Research Paragraph 2: A part of stock market consists of mutual funds. These funds are a collection of investments, such as stocks, bonds and other funds owned by a group of investors and managed by a professional money manager. For example, when you buy a mutual fund, you're pooling your money along with other investors. You put money into a mutual fund by buying units or shares of the fund. As more people invest, the fund issues new units or shares. When the demand increases, the shares also increase. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price. Mutual funds are well balanced and offer more safety to investors.
Why I invested in theses 3 companies?: The stocks I invested in in the beginning were Johnson and Johnson, Sky PLC, Lotus bakeries. The reasons I invested in these stocks were because the companies are three different categories/sectors. Then I also wanted to invest in three different money makers for example pound,dollar and euros.
Update paragraph: For now the worst investment I made was Tesla it went down by -6.46%. I also invested in Johnson and Johnson it is now currently going down -0.25% but 2017 is looking better for Johnson and Johnson. The company doing best now is Lotus bakeries which is currently going up by 0.22%. I also sold Sky and made a profit of 0.18 euro. In the future, I would like to pay more attention to my stocks. I would also like to dare selling and buying more than I did until now. I think it would improve my profits to follow them more closely.
Final reflection paragraph 1: The best investment was a Belgian share Lotus Bakeries which was a very good investment. Then Tesla Motors and Johnson and Johnson didn’t perform as well as I was expecting. Lotus Bakeries has grown because of their new products added to their selection. On top of this Lotus Bakeries bought the fast- growing UK company Natural Balanced Foods which makes the healthy Nakd and Trek bars. Then for Tesla Motors, the production of its new SUV the Model X was slower than ever expected. The company’s shares dropped over 8% in just one day after it revealed that it had only shipped 208 Model Xs, with delays that would leave customers wait for years. At last for Johnson and Johnson there has been a lot of pressure by the government to decrease the price on the pharmaceuticals. Also, the competitions increases for and certain companies begin to sell the similar products at a lower price. Overall, the results of my stocks were disappointing the starting situation was very promising but didn’t turn as well as I was expecting.
Final reflection paragraph 2: If I would redo this project I would definitely re-invest in Lotus Bakeries because they seem to be very stable and they have a long history of doing good business without taking exceptional risks. I would also dare to sell and buy more stocks. Then I could also definitely keep more track of my investments. If we would continue this project then I would buy a few more stocks. These things would make a big difference to my position in the list of the class which is now 30. For me investing in the stock market is a little bit like a game because you never know how your stocks will stay in a long term this was a little bit frustrating. Overall, I have learned a lot about investing in stock markets this will make me more confident in the future to be more active with stocks.