FINANCE 4 -----MONEY MGT

$$$$$$$ INVESTMENT PROJECT $$$$$$$

OBJECTIVES:

 

Ø      Provide an understanding of the operation of US stock market and equity investments.

Ø      Enhance your financial research knowledge.

Ø      Develop an understanding of the investment market, buying/selling stocks.

Ø      Use technology for investment purposes.

 

THE PROJECT:

 

You are allocated $50,000 to invest as you wish in the US stock market.

$40,000 must be invested in US stock market (public companies) (min 4- max 6).

$10,000 must be invested in two mutual funds of different objectives. (min 2)

 

All information stated below is due and required upon the Project BEGIN date as stated in your syllabus schedule. An organized “Portfolio” must be established, all material in a binder, turned in on the BEGIN due date. All summaries & spreadsheets must be TYPED

 

PORTFOLIO REQUIREMENTS: (Choose a portfolio name, i.e Golden Surf)

 

  1. Select 4-6 stocks and 2 mutual funds

 

  1. Establish a cover page using MS Excel or Word stating the: 1) Name of Co or Mutual Fund (MF), 2) Stock/MF Symbol, 3) Purchase Price/ Date of purchase for each stock and MF 3) Total amount invested in each stock/MF, 4) Total amount of Investment for the portfolio. You need to make sure to invest all or as much of the $50,000 as possible.  Any amount remaining (not invested) will be set aside as cash, no interest will be earned on that amount.

 

  1. For each stock, the following research is needed: 1) Profile of the Co, 2) Type of industry and competitors, 3) Past one year stock performance/graphs on past stock performances maybe included, 4) Analysts opinion and future expectations. 5) News article pertaining to the investment 6) Educated reasons for why you selected the stock. A copy of each of all the research material needs to be included for each stock. Summarize your research information and reasons for stock selection. (Show proof of day of purchase and stock price).

 

  1. A TYPED SUMMARY of # 3 research info is required for each stock (1 pg).

 

  1. For each mutual fund, you need to include a copy of 1)Fund and Company name, 2) symbol, 3) Fund Objective and fund type, 4) Performance, past 1 yr, 3 yr, 5 yr, and overall. 5) Expenses, fees and cost, 6) Holdings (top 10 investment in the fund). 7) Any news article pertaining to the Mutual Fund. 8) Reason for selecting the fund. Summarize all info in one page and include a copy of all research info. (show proof date of purchase and MF price).

 

  1. A TYPED SUMMARY of # 5 research info is required for each MF (1 pg).

The Online Spreadsheet and Investment Tracking:

 

a)      You need to establish a spreadsheet on the WEB (online) to track your investment and research. Yahoo Finance is recommended.

b)      In the spreadsheet the following info/fields are needed for each investment:

 

Company Name

Stock Symbol/MF symbol

Price of Stock (last trade)

Purchase Price

# of Shares Purchased

Total Value of Investment (Value of your portfolio)

Total Gain/Loss and % Gain/Loss

P/E ratio

EPS (earning per share)                                   

 

7. After your initial "Start" and completion of First Presentation and Portfolio submission, each Portfolio is GRANTED the following:

TWO (BUY) TRANSACTIONS (STOCKS ONLY)

TWO (SELLING) TRANSACTIONS (STOCKS ONLY)

Both maybe (not required) excersised during the "four week" portfolio watch and check.

Each transaction must be documented with company information, reasons for purchase or sell, (see # 3 above) and financial accounting of the transactions.

The Yahoo spreadsheet should be established and completed by the time you BEGIN the project, thus it must be included in your Portfolio on the BEGIN due date.  

 

The online Yahoo spreadsheet is updated automatically once established. You need to make a printout to be included in your Portfolio each week once the project begins.

 

The WEEKLY UPDATES:

Once the Project begins, you are responsible to update the portfolio weekly, the update will include an updated spreadsheet, copy of NEWS articles pertaining to each of your investment. A one page print summary for all of the NEWS articles of the week. Mutual funds do not require NEWS article updates.

 

Advice: Diversify your investment. Don’t put all your eggs in one basket. Thus, select companies in different industries. Example IBM and Safeway rather than IBM and HP!

BEGIN PREPARING AS EARLY AS YOU CAN!!  I can help but you have to be proactive about learning. It’s your project so make the most of it. You will learn a lot!

 

NO PROJECTS WILL BE ACCEPTED BEYOND THE DUE DATE.  ALL PROJECTS ARE TO BE TURNED IN ON THE BEGIN AND END DATES (see syllabus schedule).

 

ALL SUMMARIES MUST BE TYPED. ALL INFORMATION MUST BE ORGANIZED!

 

Typical Portfolio Format: Title Page, Cover Page,  Online Spreadsheet, Stock 1, Summary 1, Research 1, Stock 2,  Summary 2, Research 2, etc….