Stock Market Project
I. Investment Objective Analysis We worked together on their finance stock market project. We felt that our risk tolerance was different then it normally would be sense we had 500,000 to invest in the stock market compared to our own money. Due to the fact that this was fake money we found ourselves to be conservative as well as risky depending on the situation. We have been given three months to invest money in the stock market as well as with different types of investments such as shorting, limiting, etc and to come out with a positive return. Our strategy was to be in the top tier percentage in the class. We wanted to find stocks that would be unique and not as commonly owned compared to other students in the class. We focused our initial investments on ETF’s as we liked the idea of investing in a group of stocks instead of just one main stock. We also made sure that we had been diversified by investing in as many different sectors of the market as possible.
II. 10 Transactions Chosen and Why
1. SPY – S&P Depository Receipts We Invested in SPY because we wanted to focus on investing in ETF’s. SPY is a sector of the S&P depository receipts and has companies such as Exxon Mobile, Apple and Microsoft as some of their holdings. Investing into SPY allowed us to invest into multiple well known stocks that create high rewards with low risk and volatility in one ETF stock.
2. MSFT – Microsoft Corp
We wanted out portfolio to be diversified and invested into MSFT. This was our main technology investment that came at a fairly cheap price.
3. SYY – Sysco Inc
We invested in SYY because after doing some research online and in the wall street journal we noticed that SYY executives claimed their end of the quarter earnings was double of what they expected and that they expected to make even more profit in the next quarter. We invested with hopes of hitting it big, however, SYY never took off and we were losing money for most
II. 10 Transactions Chosen and Why
1. SPY – S&P Depository Receipts We Invested in SPY because we wanted to focus on investing in ETF’s. SPY is a sector of the S&P depository receipts and has companies such as Exxon Mobile, Apple and Microsoft as some of their holdings. Investing into SPY allowed us to invest into multiple well known stocks that create high rewards with low risk and volatility in one ETF stock.
2. MSFT – Microsoft Corp
We wanted out portfolio to be diversified and invested into MSFT. This was our main technology investment that came at a fairly cheap price.
3. SYY – Sysco Inc
We invested in SYY because after doing some research online and in the wall street journal we noticed that SYY executives claimed their end of the quarter earnings was double of what they expected and that they expected to make even more profit in the next quarter. We invested with hopes of hitting it big, however, SYY never took off and we were losing money for most