Vocab
1. DIVIDENDS-The distribution of a portion of a companies earnings by the company itself.
Ex: Apple gave dividends to twenty people last week.
Ex: Apple gave dividends to twenty people last week.
2. EARNINGS- Money earned through paid employment, as profit, or from investments.
Ex: Last month my earnings at work increased a lot because i worked more.
Ex: Last month my earnings at work increased a lot because i worked more.
3. PRIVATE COMPANIES VS. PUBLIC COMPANIES- One that isn't accessible to the public is a private company. A Public company has stocks that are accessible to the public.
Ex: Google is a public company and anyone can buy into it. On the other hand USPS is a privately owned company.
Ex: Google is a public company and anyone can buy into it. On the other hand USPS is a privately owned company.
4. GROWTH STOCK-Shares in a company who's earnings are expected to grow at an above average rate.
Ex: Apple's growth stock is expected to increase 600% over the next week when the new I Phone comes out.
Ex: Apple's growth stock is expected to increase 600% over the next week when the new I Phone comes out.
Journal
This week I decided to buy more stock from Apple.I choose to do this because the catalyst is the IPhone5 coming out on October 15. Right now Apple is losing money so it's a good time to buy more stock before the new phone comes out and the price goes up. In this case me buying the stock is a good transaction because in the end I will end up making money. After the I Phone 5 has been on sale for a couple weeks i think Apple will start going back down and that's when I'll short sell my shares. I think buying more stock now will definitely get me more money in the long run. I think that with the unveiling of the I Phone 5 Apple's sales will increase by at least $4.00 a share because everyone will go in all at once to buy the phone and everyone will want in on this stock making the demand much higher. According to the 52 week graph whenever Apple comes out with a new phone or computer the stock prices go substantially higher. Thus, I came to the conclusion that when the I Phone 5 comes out the pattern will continue and I will make more money because the stock prices will go up. Apple's leading competitor is Dell. According to my research Dell is selling its stock for more than $300 less than Apple is, therefore, they are losing less many and also making less money too. Dell isn't suppose to be coming out with anything new anytime soon so I think its safe to say that Apple is still good with getting money.
This week I decided to buy more stock from Apple.I choose to do this because the catalyst is the IPhone5 coming out on October 15. Right now Apple is losing money so it's a good time to buy more stock before the new phone comes out and the price goes up. In this case me buying the stock is a good transaction because in the end I will end up making money. After the I Phone 5 has been on sale for a couple weeks i think Apple will start going back down and that's when I'll short sell my shares. I think buying more stock now will definitely get me more money in the long run. I think that with the unveiling of the I Phone 5 Apple's sales will increase by at least $4.00 a share because everyone will go in all at once to buy the phone and everyone will want in on this stock making the demand much higher. According to the 52 week graph whenever Apple comes out with a new phone or computer the stock prices go substantially higher. Thus, I came to the conclusion that when the I Phone 5 comes out the pattern will continue and I will make more money because the stock prices will go up. Apple's leading competitor is Dell. According to my research Dell is selling its stock for more than $300 less than Apple is, therefore, they are losing less many and also making less money too. Dell isn't suppose to be coming out with anything new anytime soon so I think its safe to say that Apple is still good with getting money.
Another transaction I had this week was selling all 200 stocks of Starbucks. I choose to do this because that was a trade and i was losing money on it. There are no catalyst that I saw coming out anytime soon that would cause me to hold onto these shares so i sold them before i lost more money on them. I did some thinking and around late October is a good time to come back and buy back into Starbucks. That's just as the weather starts to get cold and the holiday season is around the corner, the perfect time to purchase coffee. Starbucks main competitor is McDonald's, and McDonald's has a solid profit and has had a solid profit for the last 52 weeks according to its graph. I think that Starbucks will continue to steadily lose money until the holiday season comes around.
