You have formed an investment club and solicited your friends to join. The club sold 300 shares at $10 each to members t
Posted: Sun Jul 03, 2022 6:43 am
You have formed an investment club and solicited your friends tojoin. The club sold 300 shares at $10 each to members to raisemoney for you to invest. The total amount of money the investmentclub has to invest is $3,000 (300 shares x $10). Below there aresix different stocks available for you to invest in. You mustinvest the entire $3,000 in a minimum of 3 different stocks. Youmay invest in as little 3 stocks or spread the money over all 6stocks. You will fill out the chart below showing your investmentdecisions.
Stock Options
This is a new cellular company thatfeatures high-tech services such as phones that send streamingvideo. So far, the company has not made a profit but expects to dovery well soon.
Big Box Stores is one of the leadingdiscount retailers in the country. Same-store sales have increasedsteadily in each of the last five years.
Biotech Industries is a pharmaceuticalcompany that specializes in developing cutting-edge drugs. It hassome profitable products, but so far its profits are small.
This is a leading grocery store chain.Sales are generally steady and do not change much with theeconomy’s ups and downs. However, some experts predict that thegrowing trend toward eating out in restaurants will hurt futuresales.
Giant Auto is one of the three leadingautomobile manufacturers in the world. The company’s profits dependon economic conditions. Profits are high in times of strongeconomic growth and poor in bad times or recessions.
GMG is a gold-mining company. Theprice of gold often rises in bad times or recessions and falls ingood times.
Company
Price Per Share
No. of Shares Purchased
Amount Invested
American Cellular
$5
50
250
Big Box Stores
$20
40
800
Biotech Industries
$10
50
500
General Grocery
$20
40
800
Giant Auto
$10
40
400
Gold Mining Group
$5
50
250
Total Investment Value (Add last column. Must equal $3,000)
3000
One year has passed and the prices of your investments havechanged. The new price per share is listed in the chart below.Complete the chart to determine how well your investment club didand answer the questions that follow. The value of your investmentdepends on the companies in which you invested.
Company
Price Per Share
No. of Shares Purchased
Amount Invested
Investment Value 1 Year Later
American Cellular
$8
50
?
?
Big Box Stores
$23
40
?
?
Biotech Industries
$8
50
?
?
General Grocery
$22
40
?
?
Giant Auto
$11
40
?
?
Gold Mining Group
$4
50
?
?
Total Investment Value
Investment Information:
Number of shares purchased by members: 300
Price per share purchased :___________
(Investment Value 1 Year later divided by number of shares)
Stock Options
This is a new cellular company thatfeatures high-tech services such as phones that send streamingvideo. So far, the company has not made a profit but expects to dovery well soon.
Big Box Stores is one of the leadingdiscount retailers in the country. Same-store sales have increasedsteadily in each of the last five years.
Biotech Industries is a pharmaceuticalcompany that specializes in developing cutting-edge drugs. It hassome profitable products, but so far its profits are small.
This is a leading grocery store chain.Sales are generally steady and do not change much with theeconomy’s ups and downs. However, some experts predict that thegrowing trend toward eating out in restaurants will hurt futuresales.
Giant Auto is one of the three leadingautomobile manufacturers in the world. The company’s profits dependon economic conditions. Profits are high in times of strongeconomic growth and poor in bad times or recessions.
GMG is a gold-mining company. Theprice of gold often rises in bad times or recessions and falls ingood times.
Company
Price Per Share
No. of Shares Purchased
Amount Invested
American Cellular
$5
50
250
Big Box Stores
$20
40
800
Biotech Industries
$10
50
500
General Grocery
$20
40
800
Giant Auto
$10
40
400
Gold Mining Group
$5
50
250
Total Investment Value (Add last column. Must equal $3,000)
3000
One year has passed and the prices of your investments havechanged. The new price per share is listed in the chart below.Complete the chart to determine how well your investment club didand answer the questions that follow. The value of your investmentdepends on the companies in which you invested.
Company
Price Per Share
No. of Shares Purchased
Amount Invested
Investment Value 1 Year Later
American Cellular
$8
50
?
?
Big Box Stores
$23
40
?
?
Biotech Industries
$8
50
?
?
General Grocery
$22
40
?
?
Giant Auto
$11
40
?
?
Gold Mining Group
$4
50
?
?
Total Investment Value
Investment Information:
Number of shares purchased by members: 300
Price per share purchased :___________
(Investment Value 1 Year later divided by number of shares)