Stock Market Assignment
The stock market plays an important role in businesses today. Becoming an investor proved how important it is to understand the stock market. This assignment gave me the opportunity to research and invest in different companies and to learn about the stock market. I also had the opportunity to watch the S&P 500, NYSE, and the NASDAQ, and reflect on market changes and challenges.
When choosing stocks to invest in, I was looking to create a diverse portfolio by choosing a variety of industries, price ranges, well known companies and some that were new to me. I visited their websites, read mission statements, and reviewed past performance, learning as much ...view middle of the document...
They focus on creating products, growing and harvesting trees in an environmentally and socially responsible manner. (Weyerhaeuser)
I choose one of my investments in the real estate market because it has always been an area of interest to me. I enjoy learning about real estate and watch the market in my area. I invested in AvalonBay Communities. They develop, redevelop, manage and acquire high quality apartment communities. They focus on creating a community that enhances the lives of their residents.
The stocks I choose to invest in had similar reactions to the S&P 500, NYSE, and the NASDAQ. The controversy surrounding the United States budget and whether or not the United States economy is heading for bankruptcy has lead to market uncertainty. The S&P 500, NYSE, and the NASDAQ all plummeted as a result of these current events. Uncertain markets lead to stock holders selling their stocks for fear that they might lose a significant amount of money resulting in a decline in the value of company stocks. Other investors might have taken advantage of the stock prices and invested in stocks while at a low to hopefully increase revenue.
The political controversy in the United States had a huge effect on my stock market portfolio. All of my stocks except of CROX and COKE saw a decline in value which resulted in an increase in volume during the end of July, first part of August. The decrease in stock value is directly related to the increase in volume as stockholder took advantage of the low investment rates.
CROX saw an increase in value and volume during this same time frame. This comes as the second quarter financial report is released along with the announcement of the new spring/summer 2012 footwear line. Crox promises to bring innovation, style and comfort to an already popular brand. New styles will appeal to more consumers and provide a selection of shoes suitable for all occasions.
COKE released on August 9th, 2011 its second quarter financial report. The results of the report showed a loss of income due to the increase in aluminum and fuel costs, along with the loss of assets as a result of the 2010 Nashville Flood. The value of COKE stocks decreased along with a decrease in volume during this period.
As a result of the quick decrease in market value I choose not to trade my stocks during the month of August in hopes that they would recover. They had slowly started to regain value when I traded them on September 16th, 2011. This increase in value could be a result of decreased media coverage in the United States which lessens the worries of investors.
When comparing the results of the S&P 500, NYSE, and the NASDAQ to what my portfolio did during the same time frame, I noticed very similar results. A decrease during the beginning of August leading to the slow recovery at the time I traded my stocks in September.
This assignment was a real learning experience for me. I did not have any previous...