Unit 2 Case Simulation Of Stocktrak
1
Stocktrak is a virtual stock market stimulation. Many students set up an account and receive virtual money that can be used for investing in stock, bonds, and mutual funds. After purchasing these investments, you can monitor and trade them as you wish. The site is used by many teachers to get their students familiar with the stock market and its many advantages. In my simulation, I had an individual account and a group account. I was given $100,000 and had a limited number of ten trades. In the group portion, my group was given $100,000 and had a limited number of one hundred trades. The object of the project was to become familiar with and learn the differences of frequent versus long term trading. Another goal of the project …show more content…
Stocks have had an overall trend of increasing. The problem with long term investing is the time period it takes to earn a preferred rate of return. It has been criticized for taking a long period of time the might not be feasible for some investors. Inflation is also a serious threat of long term stocks because it has historically stripped 3.2% a year off the value of money. This can affect what your stocks are worth and decrease your return. I actually earned a negative return on my investments made for long term purposes. I tried to buy stocks that were growing for the purpose of making the largest long term return possible. For the ten weeks I held them, the stocks did not rise as I thought they would. The stocks do have the potential to earn positive returns in the future if held for a longer period of time. When I first started the Stocktrak project, I was very unsure on how to select the companies to invest in. I viewed the companies’ stocks and basically chose the entities with an increase in their stock price. After learning more about financial analysis, I learned there are many ways to analyze a company’s current and future earnings. The three most important aspects of financial statement analysis which assisted me in my investment decisions include profitability ratios, horizontal analysis, and analyst estimates and predictions. I did research on many companies I was interested in
Stocktrak is a virtual stock market stimulation. Many students set up an account and receive virtual money that can be used for investing in stock, bonds, and mutual funds. After purchasing these investments, you can monitor and trade them as you wish. The site is used by many teachers to get their students familiar with the stock market and its many advantages. In my simulation, I had an individual account and a group account. I was given $100,000 and had a limited number of ten trades. In the group portion, my group was given $100,000 and had a limited number of one hundred trades. The object of the project was to become familiar with and learn the differences of frequent versus long term trading. Another goal of the project …show more content…
Stocks have had an overall trend of increasing. The problem with long term investing is the time period it takes to earn a preferred rate of return. It has been criticized for taking a long period of time the might not be feasible for some investors. Inflation is also a serious threat of long term stocks because it has historically stripped 3.2% a year off the value of money. This can affect what your stocks are worth and decrease your return. I actually earned a negative return on my investments made for long term purposes. I tried to buy stocks that were growing for the purpose of making the largest long term return possible. For the ten weeks I held them, the stocks did not rise as I thought they would. The stocks do have the potential to earn positive returns in the future if held for a longer period of time. When I first started the Stocktrak project, I was very unsure on how to select the companies to invest in. I viewed the companies’ stocks and basically chose the entities with an increase in their stock price. After learning more about financial analysis, I learned there are many ways to analyze a company’s current and future earnings. The three most important aspects of financial statement analysis which assisted me in my investment decisions include profitability ratios, horizontal analysis, and analyst estimates and predictions. I did research on many companies I was interested in