10 Stock Research Project
Kritika Mehta September 30, 2014
IDC4U1- 10 Stock Research Project
Investing in stocks can be a great risk, often leading to profits or mistakes. Before buying the stocks, I thought of what companies are doing well in the market, which includes demand of their products by consumers. For instance, I bought stocks from Tim Horton 's and Air Canada, as I realized that consumers always have a demand for fast food products and travelling for various purposes throughout the year. It 's often a better choice to buy various different stocks that may not all be profitable, such as a food company, a retail company, and an insurance company, as you diversify your stock portfolio and instead of expecting only profits or only losses in your stock, you can balance them out (Roseman 1). The diversified portfolio theory helps one make a good investment, while expecting less losses, since there is more variety in your stocks, and so, some stock prices may increase, while some may decrease. This is a better investment as you may gain profits, or may balance your profits with your losses, and minimize the chances of losses when investing your money. A theory, such as the backup theory can also prove why diversification in stocks is important. I invested in stocks such as the oil sands, telecommunication services, retail, food market, and the hardware stores to have investments in various different fields or industries, so that if one industry is in loss, I can rely on another industry doing well (Hulbert 1). To make a good investment in stocks, one must also have realistic expectations of a company 's profit, and not only expect profits. Before purchasing the Telus stock, I realized that the company had fluctuations in their dividend as sometimes the dividend would increase, yet sometimes it would fall. As an investor, it 's better to look at the whole picture and understand that prices will fluctuate, but holding on to the stock for a longer period of time may also increase
IDC4U1- 10 Stock Research Project
Investing in stocks can be a great risk, often leading to profits or mistakes. Before buying the stocks, I thought of what companies are doing well in the market, which includes demand of their products by consumers. For instance, I bought stocks from Tim Horton 's and Air Canada, as I realized that consumers always have a demand for fast food products and travelling for various purposes throughout the year. It 's often a better choice to buy various different stocks that may not all be profitable, such as a food company, a retail company, and an insurance company, as you diversify your stock portfolio and instead of expecting only profits or only losses in your stock, you can balance them out (Roseman 1). The diversified portfolio theory helps one make a good investment, while expecting less losses, since there is more variety in your stocks, and so, some stock prices may increase, while some may decrease. This is a better investment as you may gain profits, or may balance your profits with your losses, and minimize the chances of losses when investing your money. A theory, such as the backup theory can also prove why diversification in stocks is important. I invested in stocks such as the oil sands, telecommunication services, retail, food market, and the hardware stores to have investments in various different fields or industries, so that if one industry is in loss, I can rely on another industry doing well (Hulbert 1). To make a good investment in stocks, one must also have realistic expectations of a company 's profit, and not only expect profits. Before purchasing the Telus stock, I realized that the company had fluctuations in their dividend as sometimes the dividend would increase, yet sometimes it would fall. As an investor, it 's better to look at the whole picture and understand that prices will fluctuate, but holding on to the stock for a longer period of time may also increase
Cited: Hulbert, Mark. "Now the Long Run Looks Riskier, Too." The New York Times. The New York Times Company., 28 March 2009. Web. 02 Oct. 2014. <http://www.nytimes.com/2009/03/29/your- money/stocks-and-bonds/29stra.html?_r=0>. Kuepper, Justin. "A Look At Exit Strategies." Investopedia. Investopedia US., n.d. Web. 02 Oct. 2014. <http://www.investopedia.com/articles/trading/04/092904.asp> Roseman, Ellen. "Tips on Doing Your Own Stock Investing." Thestar.com. Toronto Star Newspapers Ltd., 30 Sept. 2013. Web. 02 Oct. 2014<http://www.thestar.com/business/personal_finance/2013 -/09/03/tips_on_doing_your_own_stock_investing_roseman.html>. "Want to Know to Buy and Sell Stocks?" The Globe and Mail. The Globe and Mail Inc., 18 Feb. 2014. Web. 03 Oct. 2014. <http://www.theglobeandmail.com/globe-investor/investor- education/investor-education-fund/stocks/how-to-buy-and-sell-stocks/article16914643/>.