Stock Market Project
Stock Market Project
August 25, 2008
The purpose of this paper is to explain the outcomes and decisions involved in investing one million dollars in four various stocks. Choosing a stock to invest in and how much to invest can be very difficult. There are many web sites available online to make the decision a little easier. This paper will explain why AT&T, Exxon, Apple and Wal-mart were the chosen four and the final outcome of the investment after four weeks. There are an overwhelming amount of stocks available for purchase on the stock market. The first thing to do is come up with a list of investing objectives. Some primary objectives should include earnings growth, recent earnings surprises, price/earnings ratios, dividends, the market cap or size, the industry and relative strengths or weaknesses. Most of the information needed for proper research can be found on any company’s income statement, balance sheet and cash flows statements. Most of these statements can be found on a company’s annual reports or its financial statements; which can be gathered directly from the company’s website or sites such as Hoovers.com, Forbes.com and many others. Another way to determine which stocks to choose is to look at the AGR scores of a stock. AGR scores are based on statistical analysis of accounting and governance risk factors. Lower scores indicate a corporate integrity risk. One million dollars was made available to invest in four companies. In order to decide on these four companies careful research and planning had to take place. In order to make the process easier companies familiar to day to day operations or in the recent news were chosen and the final four were narrowed down based off of their financial reports. These final four were AT&T, Exxon, Apple and Wal-mart. AT&T and Apple were chosen because of their venture together with the new iphone which was reintroduced with a newer version on july 11th. A vast amount of people
August 25, 2008
The purpose of this paper is to explain the outcomes and decisions involved in investing one million dollars in four various stocks. Choosing a stock to invest in and how much to invest can be very difficult. There are many web sites available online to make the decision a little easier. This paper will explain why AT&T, Exxon, Apple and Wal-mart were the chosen four and the final outcome of the investment after four weeks. There are an overwhelming amount of stocks available for purchase on the stock market. The first thing to do is come up with a list of investing objectives. Some primary objectives should include earnings growth, recent earnings surprises, price/earnings ratios, dividends, the market cap or size, the industry and relative strengths or weaknesses. Most of the information needed for proper research can be found on any company’s income statement, balance sheet and cash flows statements. Most of these statements can be found on a company’s annual reports or its financial statements; which can be gathered directly from the company’s website or sites such as Hoovers.com, Forbes.com and many others. Another way to determine which stocks to choose is to look at the AGR scores of a stock. AGR scores are based on statistical analysis of accounting and governance risk factors. Lower scores indicate a corporate integrity risk. One million dollars was made available to invest in four companies. In order to decide on these four companies careful research and planning had to take place. In order to make the process easier companies familiar to day to day operations or in the recent news were chosen and the final four were narrowed down based off of their financial reports. These final four were AT&T, Exxon, Apple and Wal-mart. AT&T and Apple were chosen because of their venture together with the new iphone which was reintroduced with a newer version on july 11th. A vast amount of people