Paper , Order, or Assignment Requirements

In this course you will be required to research the stock market and become familiar with stock market performance indicators. You will also take part in a simulation to see just how good of an investor you can be.

It is important to note that you will be monitoring your stocks for a six-week period. You must begin now so that you will have time to complete all parts of this assignment. Plan ahead!

The problem: You have just inherited $100,000 from your millionaire great-uncle. The stipulation is that you must invest it in the stock market until you turn twenty-one. First, you must familiarize yourself with the stock market and then decide what some good investments might be.

Your assignment: Follow the research guidelines explained later in this section as you research and respond to the following questions. You will complete this project in four separate parts. Your findings for each part should include and address each of the proposed questions. You will submit each part as instructed on page 15.

Part 1:

Research: Learn the key terms and basic functionality of the stock market.

Research the stock market. What is a stock? What is a share? What is an exchange? Identify the various exchanges where stocks can be traded and discuss their similarities and differences (i.e. NYSE, NASDAQ). What types of companies are traded on each?
Research stock market performance indicators, such as the DOW Jones and S&P 500. What do the indicators measure? How do they help predict the performance of the market? What are their flaws?
Research the sectors of the market. Identify three companies in each sector.
Research companies in which you would invest. What characteristics do they have that make them good prospects? In other words, why might you choose to invest in each one of them?