Stock Market Project
Starting Date: February 2, 2010
Ending Date: April 28, 2010
Buying on Margin:
A. Initial Investment = (Purchase Price* number of stocks)*Initial Margin
Initial Investment = ($195.86 * 100) * .55 = $10,772.30
B. Profit/Loss = (Sales Price – Purchase Price) * Number of Shares
Profit/Loss = ($262.04 – $195.86) * 100 = $6,618
C. HPR = (Capital Gain/loss) ÷ Initial Investment
HPR = ($262.04 – $195.86) ÷ $10,772.30 = .00614 = .614%
D. APHR = (1 + HPR)N – 1
APHR = (1 + .00614)4 – 1
APHR = .0248 = 2.48%
E. Full Price = $195.86*100 = $19,586
HPR = $6,618/$19,586 = .3378 = 33.78%
APHR = (1 +.3378)4 – 1 = 2.2030 = 220.30%
Short Sale
A. Initial Investment = $78.18*100 = $7,718 *.55 = $4,299.90
B. Short Sale = (Short Sale – Purchase Price)*100
Short Sale = ($76.84 – $78.18)*100 = -$134 loss
C. HPR = (76.84 – 78.18)/$4,299.90 = -.0003116
D. APHR = (1+ -.0003116)4 – 1 = .00124 .124%
Social Responsibility
A. Siemens AG (SI)
B. I chose Siemens AG because they have made efforts to help the environment and society. Some of the things that they do that help society is by switching their lights to LED plant that helps reduce the amount of energy and CO2 in the environment. To transport their goods, Siemens AG uses wind power’s green transport strategies. They also use wind turbines to produces clean energy. Siemens also does things for its employees by making sure they are working in a safe environment. They also give back to the community by having charities such as “Siemens Caring Hands Program.” They run events such as blood drives, Holiday food and gifts collections. They also run campaigns to help out the people that were victims of a natural disaster such as the earthquake that occurred in Haiti.
C. HPR = ($95.66 - $92.54)/$92.54 = .0337 = 3.37%
D. AHPR = (1 + .0337)4 – 1 = .1418 =
Ending Date: April 28, 2010
Buying on Margin:
A. Initial Investment = (Purchase Price* number of stocks)*Initial Margin
Initial Investment = ($195.86 * 100) * .55 = $10,772.30
B. Profit/Loss = (Sales Price – Purchase Price) * Number of Shares
Profit/Loss = ($262.04 – $195.86) * 100 = $6,618
C. HPR = (Capital Gain/loss) ÷ Initial Investment
HPR = ($262.04 – $195.86) ÷ $10,772.30 = .00614 = .614%
D. APHR = (1 + HPR)N – 1
APHR = (1 + .00614)4 – 1
APHR = .0248 = 2.48%
E. Full Price = $195.86*100 = $19,586
HPR = $6,618/$19,586 = .3378 = 33.78%
APHR = (1 +.3378)4 – 1 = 2.2030 = 220.30%
Short Sale
A. Initial Investment = $78.18*100 = $7,718 *.55 = $4,299.90
B. Short Sale = (Short Sale – Purchase Price)*100
Short Sale = ($76.84 – $78.18)*100 = -$134 loss
C. HPR = (76.84 – 78.18)/$4,299.90 = -.0003116
D. APHR = (1+ -.0003116)4 – 1 = .00124 .124%
Social Responsibility
A. Siemens AG (SI)
B. I chose Siemens AG because they have made efforts to help the environment and society. Some of the things that they do that help society is by switching their lights to LED plant that helps reduce the amount of energy and CO2 in the environment. To transport their goods, Siemens AG uses wind power’s green transport strategies. They also use wind turbines to produces clean energy. Siemens also does things for its employees by making sure they are working in a safe environment. They also give back to the community by having charities such as “Siemens Caring Hands Program.” They run events such as blood drives, Holiday food and gifts collections. They also run campaigns to help out the people that were victims of a natural disaster such as the earthquake that occurred in Haiti.
C. HPR = ($95.66 - $92.54)/$92.54 = .0337 = 3.37%
D. AHPR = (1 + .0337)4 – 1 = .1418 =