Consumer Skills Stock Market Project
Ms Griffith
Steps for Wise Investments
Every day millions of people all over the world are trying to identify the best stocks to
buy. The stock market is not a game. Successful investors do their homework. They spend
weeks or months researching a company using very sophisticated techniques plus low cost
public information before buying stock. The golden rule is never invest in the stock market
unless you are prepared to lose money. There are no guarantees.
What information does an investor need to determine if a company is a good financial choice?
There are many techniques used to making a stock investment. Fundamental analysis involves
knowing the company’s current management and position in the market. Technical analysis
focuses on charts, trends, and forecast predictions.
1. Maintain a weekly stock chart for each company
a. Access Yahoo Finance, MSN Money News, CNN Money for stock info
b. Record opening and daily stock price on Monday and Thursday
c. Record change in stock price-percentage of increase/decrease
d. Identify and record volume of stock trade
e. Summarize current stock news for each company
i. Include economic items related to the stock market
ii. Include any major political event during the week.
You will prepare a portfolio for each company.
2. Create a portfolio for each company
a. Profile/business summary
b. Number of employees
c. Current stock rating
d. Pros and cons of investing in the stock
e. Past performance of
i. 3, 6, and 12 month period
ii. Performance in last ten years-identify date and amount of the highest
and lowest price for company’s stock
f. Additional info and/or statistics that help analyze your stock
2. Your final summary will include a comparison between the two companies. Which
company has a more secure financial forecast? Utilizing research you have collected
identify if either company is a good investment. Do you support the forecast for the
company?
Electronic sources to collect stock and financial information
http://finance.yahoo.com
http://mon=eycentral.msn.com/home.asp
Enter “stock symbol” in GET
QUOTES
Locate Guided Research link
Select Research Wizard
Real time stock info-15 minute delay
Chart provides real time trading
Graph will provide trade info on
stock for 1d, 5d, 3m, 6m, 1yr….
Headlines – current info on company
Get Started-enter stock symbol
Check left column-More on
Select Company section
Profile-Company background
info
Competitors-Quarterly
Growth
Industry-Company’s status in
market
Fundamentals-Company background
Select Analyst Coverage
Analyst Opinion-review
recommendations
Price History-ups and downs of stock
Price Target-future expectations
Comparison within the industry
Useful weekly publications are
Useful daily publications include
The Wall Street Journal
CNN fn
USA Today
Barron’s National Business & Financial
Weekly
Business Week
Forbes
Fortune
Money
MSNBC