Stock Market Project

Topics: Stock, Stock market, Share price Pages: 8 (3199 words) Published: July 11, 2015
Stock Market Project
Purchase #1

Question 1:
The first stock I purchased was Microsoft as a safe investment with low risk. As the game first began to enroll itself, Microsoft became a very profitable contender due to the sharp increase in share prices. I knew the increase would not hold on for long and the stock trend portrayed both sharp increases and decreases in stock prices; this attributed to the selling of my Microsoft shares as an incentive to save any gains I made.

Question 2:

Microsoft Corp. is a technology innovation company, which provides goods such as smartphones, Tablets, and computers; as well as services which include technical support and Microsoft office. Many of these products are commercialized at enormous scale, and profoundly incorporated within the classrooms of school districts around the country. Though mass marketing and product dispersion allowed the company to become as successful as it is today, market trends showed that every two months the company would go into a financial slumps, especially around the time Apple would present new products. Since Apple would not announce their new products until September, Microsoft seemed like a great contender for a safe and beginning investment as they always do around this time of year from April to May.

Question 3:
“Microsoft (NASDAQ:MSFT)” had a 52 week low at 39.86 during the Month of February 2015 due to the lack of corporate income as swell as the loss of consumer interest towards Microsoft’s new innovative product “Surface Pro”. The 52-week high for the company was 50.04 as the new speculation of Google’s Android section and Microsoft teaming together to produce new smartphones. Though this would only be competitive towards the cellular market, the company has also bought many rights to various prominent video game designers as well as the unveiling of Microsoft office 10. As Microsoft begins to recover from its 3-month slump, many investors also recognize this trend, which also contribute to the increase of Microsoft shares. I bought Microsoft at 41.48 towards the end of a 3-month low providing a higher chance of share growth in which the stock price would increase by 10 dollars. Averaging an increase of 2.04% my revenue reached towards 213 dollars from the 93 shares I purchased. Though the sharp increase in stock price would provide me with sufficient revenue, a change of 3 dollars would to the share would have a loss of 20 dollars. As the stock price stays around the 47-50 dollar range, I sold it in order to avoid any sharp price fall in which I would loose money rather then gain.

Purchase #2

Question 1:
Buying Synta Pharmaceuticals was purposely a risky decision due to their stock market status as “Penny Stocks”. These kinds of stocks are known to Drop and Rise at an exponential rate in a short amount in time. Synta Pharmaceuticals provided me with acquiring a large amount of stocks to generate large gains. When purchasing a penny stock such as Synta Pharmaceuticals, one can only hold on to that stock for a limited amount of time to avoid great losses from a sharp crash. I held on to the shares until it reached a profit of 100, which would provide me with sufficient revenue as well as avoiding further risk.

Question 2:

Before obtaining Synta Pharmaceuticals Stock, I noticed that many of the large short-term gains for stock profit were Penny Stocks. The pharmaceutical industry has developed an annual corporate income of 300 billion dollars in which consumers will pay anything in order to protect the health of their loved ones and themselves. Synta Pharmaceuticals announced a new drug along with its paired company Celgene Corporation which provided a study on one of their...
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