Tuesday, October 18, 2011

Vocabulary 5

17.Inflation - the rising and falling of prices
- I could see there was an inflation in stocks when i saw all of them were up a lot today.
18.Gross Domestic Product - the money value of all the finished goods and services produced within  a countries boarders in a specific time period.
-The countries gross domestic product went up dramatically in the last three months.
19.currency - money
- A lot of countries have a different type of currency from others.
20.Infrastructure - the basic physic systme of a buisness.
- The company would not be able to function without even its most basic infrastructure.

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Sunday, October 16, 2011

Vocab 4

13.  Dow Jones - an average price of 30 stocks in the United States.
      The Dow Jones average has gone down in the last year.
14. S & P 500 - 500 large cap stocks that are commonly traded in the United States.
- When I checked the stocks the other day i was surprised to see that the S & P 500 had gone up quite a bit.
15. Russle 2000- a small cap stock market index of the bottom 2000 small cap stocks.
- I bought a small cap company that is part of the Russle 2000 index.
16. Treasury Bond - long term debt instrument issued by the U.S government.
-Im getting paid intrest on my treasury bond.

Friday, October 14, 2011

Week 4 Transaction

The most significant transaction i made this week was investing in Visa. I started looking to invest in the financial sector mainly because we spend a lot of money, even in harder economic times, we all still pull out our credit cards on a regular basis. There are many credit card companies but I chose to invest in Visa because it dominates 70% of the market in companies that distribute and process credit cards. However this is not the only reason, over 6 million businesses accept visa credit cards and the amount of money spent with a Visa credit card has gone up 17% since last year. For these reasons I think Visa will be a better investment than competitors such as Matercard. I bought 215 stocks for $91.92 each which is pretty high on the $66.50 - $94.75 52 week range, but it has gone up since i bought it. For me this price was a plus since Mastercard is going for $338.85 right now. I did buy Visa as an investment, to me this is a company that I will leave alone for a long time because im confident  it will go up. I predict that Visa will go up, especially in the next few day, i have already started to see that trend.

Friday, October 7, 2011

Transaction 1
This week, my major transaction was investing in Exxon Mobile(XOM). My main reason for this was because i have real stocks in Exxon and I want to see how it's doing. Also, they have an 8 out of 10 on MSN Money, i feel like Exxon will be a solid company for me to invest in especially since the earnings growth has grown a signifigantly in this last year. I purchased the stocks at $71.88 in the $63.37 - $88.23 52 week range. It is now up to $73.23 per share. I have made money since i invested in Exxon Mobile, i predict that there will be some ups and downs but overall i think this company will prove to be a positive investment.

Transaction 2
My next transaction this week was selling apple. Apple was going to be an investment that i kept for a long time but after Steve Jobbs passed away i think selling is the best option for now especially since Apple has not been beeting me anywhere and I can always come back to it later once i find of if his death is going to effect the company or not. I sold all 45 shares for $370.50. The 52 week range is $286.91 - $422.86. Selling for that price is not bad, however i bought them for $413.42. My prediction is that i made the right choice but i was a little on edge about what the right choice was so i will just have to wait and see.

Monday, October 3, 2011

Vocabulary 3

9.   RISK-  the chance that an investments earnings will be different than expected.
- Some risk always goes along with purchasing any stock.

10.  SMALL CAP-  stocks with a relativley small market capitalization.
Small companies that are small cap, have a greating potential to grow but also have a greater potential to go bankrupt.

11.  MID CAP- stocks with an average market capitilization.
- The companies market capitilization is $5 billion so it is a mid cap company.

12.   LARGE CAP- stocks with the biggest market ccapitilization.
- The companies market capitilization was $20 billion, so it was a large cap company.