Stock Market Project Ella Kaminski

Initial Research

Stocks and shares generally mean the same thing, however they can mean slightly different things based on the context that they are used in. For example, stock generally means the certificate of ownership of any company and a share usually indicated the certificate of ownership of a particular company. Furthermore, in the stock market world, a dividend is an amount of money paid regularly, by a certain company to its shareholders directly from their profits. Additionally, another word used when investing or taking care of stock markets, is a mutual fund. A mutual fund is simply a collection of stocks; a type of investment that uses money from investors to invest in stocks. Money investors are the ones responsible of mutual funds, they invest a fund’s money into stocks, hoping to gain more than they had deposited. Moreover, a ticker symbol is an abbreviation of a company’s, used to identify them in a specific stock market. There can be letters, numbers or a combination of both, depending on the particular stock market. Finally, in the investment world, supply and demand, are two very important words when discussing stocks. A demand refers to the quantity of product desired by buyers, and a supply represents how much can a certain company afford.

Consequently, there are many different stock exchange markets all over the world, however there are several that stand out. The major ones are; the New York Stock Exchange, NASDAQ, and the London, Tokyo, and Shanghai stock exchanges. Additionally, there are pros and cons to when investing in stocks. Most of the time, it’s a good idea to invest because you have a chance to receive more money than what you originally had. However, this isn’t always the case. It’s difficult to tell which companies are going to increase their stocks throughout the years, and which are going to do just the opposite. Therefore, you might not end up having more money than the original amount, eventually there might even be less.

Mid Reflection

Over the past month, I’ve made the choice to invest in several companies, but also to sell stocks that aren’t doing so well and are having an impact on my revenues. There’s been stocks that I should have known better not to invest in, such as Chipotle and Illumina because they were all either both too expensive, unpredictable or had a clear negative return outcome. However, there's been stocks like Tesla that I've decided to keep since my initial investments because of it's constant positive improvement in the stock market world. There's also PayPal, a company that in contrast to Tesla, isn't doing so well, but I've decided to keep anyway to see how it further develops financially and later affects my stock market results, whether good or bad, in the future. Unfortunately, I made the bad decision to trade or buy all kinds of stocks when they were going down because realizing now, trading stocks doesn't necessarily mean earning more profit, in the contrary most of the time it can mean loosing more money than you initially had. Therefore, as I continue to invest in stocks for this project, I would like to try stay put with only three or four stocks, without trading any (only if necessary,) just to verify that I don't loose more money than I had used to invest.

Final results

My final rank in the stock market project is 38th

Historical Portfolio Values Chart
Tesla Motors Inc. Chart
Johnson & Johnson Chart
Deere & Company Chart
PayPal Chart

Final Reflection

During the stock market project, I invested in quite a lot of stocks good or a bad, however Tesla was the one company that stood out the most from the others, until this morning when their stock suddenly dropped by -5.94%. Tesla and PayPal were the only two stocks that I decided to keep until the end, because they were consistent and helped me gain a bit of profit. The worst investment, though, was most definitely Chipotle. After having bought two of their shares as one of my initial investment, for a very high price, their stocks suddenly dropped by a lot in just a few hours and continued decreasing until I eventually decide to trade it. My final stocks are the following: Tesla, Deere & Company, PayPal, and Johnson and Johnson. Currently, I haven’t been gaining any profit, however there are few possible reasons behind this. Firstly, a company like Tesla that produce products such as electric cars, set very high standards in today’s society, and a small mistake like a slow new model of a car, for example, can pose quite a lot of problems financially. If they release a new model of an electric car supposedly better than the last, such as the Model X, and it’s slower and worse than expected, therefore there is high risk of a decrease in their stocks. Secondly, a company like Johnson & Johnson or PayPal may have a negative percentage return because of a lack of purchase or use. Also, these are two companies that aren't going to change much, or they'll just stay the same therefore it's difficult to keep a balanced stock.

If I were to redo this project, then I would most likely not invest into any of the stocks I have now. Before doing any investing, I would try to do more research on specific companies, and decide whether or not it would be worth it to invest in their stocks. Also, I would make sure to invest in one large company such as Apple, Twitter, Amazon, etc. but a small company with potential as well. I think I would invest into Apple, because of Trump’s election, a gasoline/oil company like Exxon, Berkshire Hathaway (they’ve had very impressive percentage returns over the past month or so,) and another one or two companies. However, if I were to continue to invest in this project, I would sell Johnson & Johnson as well as PayPal because they’ve had only negative return since almost the beginning of the project. I would then invest into Berkshire Hathaway and Exxon. Also, I would try not to sell or buy as many stocks, but instead simply decide on just three or four to keep and maybe eventually trade one if it isn't doing well. Finally, thanks to this stock market project, I’ve learned what a stock is and how to invest and why, but I’ve also learned what a dividend, share range, EPS, and PE ratio is. Lastly, I’ve also learned how hard it is to invest in companies, and what should be done and what shouldn’t, and how stressing but exciting it can get to be able to own stocks and simply watch them go down or up.

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.