Friday, September 23, 2011

Stock Vocabulary/ Journal post Week one

Week One
1.   STOCKS-a "part" of the company that we own.
Ex: He owns 100 stocks in the company Pepsi and he is making money by owning a part of this company.
2.   BONDS- A debt investment in which an investor loans money to a corporate. It borrows the funds for a period of time with interest.
Ex: She placed a bond on her car for 6 years so she could pay it off over time.
3.   DOW JONES-The system of telling how the stock market is doing on a certain day.
Ex: The Dow Jones is down 400% today but I'm sure tomorrow it will be better.
4.   EQUITY- Ownership of an asset that is completely paid off.
Ex: I need to pay off the equity on my car before i can buy a new one.


Journal:
For one of my companies i chose to buy 100 shares of Pepsi.I bought this at 61.03 a share. Over the course of the week since i bought it the price has down up to 60.34 a share. This company has continued to lose money since i bought it. It's down .58 % at this moment. According to the 52 week chart Pepsi has continuously fluctuated over the course of the year. Its peak was at 71.78 and its low was 59.99. There doesn't seem to be a specific pattern as to certain times that Pepsi does better and worse according to the 52 week chart.Dr Pepper Snapple Group, Inc, The Coca-Cola Company, and Molson Coors Brewing Company are some of Pepsi's competitors. In comparison to these companies Pepsi is losing the least amount of money right now. Another company i chose to invest in was Nike. This cost me 84.72 a share. Over the course of the week the price has gone up to 88.64. The overall value of this stock is up 4.46% right now. According to the 52 week chart Nike has had rough and good patches over the last year. There is never a spot that is a straight line. Its low was 75.45 and its peak was 93.24. Nike seemed to do exceptionally well right before Christmas indicating a lot of people probably bought Nike products as gifts. Adidas is the main competitor of Nike and it shows Nike as making more money than them.
Transaction
I bought 100 stocks from Limited Brands at 41.24 a share. I bought this mainly because i like bath and body works. After watching this stock over the past few days i have decided it was an okay investment on my part. The stock has continued to lose money steadily since i bought it but i believe that eventually it will start to gain money back. I think this because the holiday season is coming up and the chain of stores that Limited Brands owns are good gifts.


 

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