Module 1 - SLP

INTRODUCTION TO FINANCIAL MANAGEMENT AND FINANCIAL MARKETS

Virtual Stock Exchange Project

You will be participating in a virtual stock exchange! You will be buying and selling stock over the next 4 modules and analyzing the fluctuation in the value of your stock portfolio.

Registration

Register for the game as soon as you can. To register your account, go to:

• http://www.marketwatch.com/game/YOURGAME*

*Your instructor will provide you with the name of YOURGAME for this term.

• Game Password: PASSWORD*

*Your instructor will provide you with the password for this term.

Registration is free.

Constraints

• You will be "given" $500,000 in fictional funds.
• Each position you take in an asset must be a minimum of 5% of your assets and a maximum of 10% of your assets.
• Cash must not exceed 20% of your portfolio at any time. We want you invested, not sitting on the sidelines.

Resources

Resources that you may find to be particularly valuable for your research include:

• MarketWatch: http://www.marketwatch.com/
• Wall Street Journal: www.wsj.com
• Yahoo Finance: finance.yahoo.com
• Daily Treasury Yield Curve Rates: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
• Bloomberg: www.bloomberg.com

SLP Assignment

• Make 3 stock purchases and provide information about the companies.

Please download the Module 1 SLP template. You will type answer into this Excel workbook. When finished with the SLP assignment, please save the document with your last name and submit to the dropbox.

1. Purchase 1 through 3: Complete 3 stock purchases of your choice. Buy at least $10,000 worth of each stock. At least one of these stocks must pay a dividend. You are free to make additional purchases. Do not sell your required stock purchases yet. Don't worry, you don't have to use any fancy methods to pick these stocks. The only restrictions are they need to be publicly traded companies with data available on webpages such as Investing.com or Morningstar.com or any of the other webpages mentioned in the directions. Your choice of companies can be made based on a variety of factors. For example, you may want to invest in a company simply because you like its products and personally use them. You can also apply some of the criteria from the background readings such as the P/E ratio, or you can search the internet and see what different analysts are saying about this company.
2. You will need to include the following information for each stock in this workbook:
   • Company Name
   • Ticker Symbol
   • Short Description of Company
   • Reason for Buying
   • Current Price
   • Previous Close Price
   • 52-week High
   • 52-week Low
   • Beta
   • Market Cap
   • P/E Ratio
   • Pays a Dividend? (Yes or No)

Answer rating: 100% (QA)

Stock Purchase Recommendations 1 Company 1 Company Name Enter Company Name Ticker Symbol Enter T... View the full answer