Thursday, September 29, 2011

Journal #2 9-29-11

Transaction #1 - Today I decided to shortsell my 50 shares of amazon because when I looked at the stocks 52 week range and how it is doing currently the price is plummeting and I expect it to do that with a couple days and I'm shortselling so I can make money off of stock.
Transaction #2 -  I also decided to invest in 500 shares of ford because with what the 52 week range told me the price of the stock has stayed fairly consistent even with operation twist and according to the graphs showing competitors ford was the best option.

Friday, September 23, 2011

Journal #1 9-23-11

Transaction #1 - Today I decided to Invest in 200 shares of Barrick Gold Corporation because #1 even with the operation twist and virtually every gold stock took a large hit but with this stock the price stayed fairly consistent, and at the moment according to Yahoo Finance its price is in about the mid of its consistent 52 week range so I expect its price to go up after I purchase it. If the stocks price goes down however I have a backup plan to shortsell it and make a return on my investment either way.

Economy Vocab

1. Stocks - A share of ownership of a company.
I bought 3000 stocks of Walmart yesterday so they give me special ownership privileges.
2. Bonds - A portion of money borrowed by the government that you can use withdraw down the road with added interest.
My grandma bought me a savings bond so that after I graduate i can use the money that has garnered interest to go to college on.
3. Dow Jones - A section of 30 stocks on the NYSE that give an idea of how the economy is doing.
When I looked on Yahoo Finance today the Dow Jones was down.
4. Equity - Ownership of an asset that is completely paid off.
My mom's house will become an Equity after she completely pays it off.
5. Dividends - a distribution of a portion of the companies earnings
My dads salary is part of a dividend of what his store makes because it belongs to a company.
6. Earnings - amount of profit that a company produces
Some companies have huge earnings of more then a billion dollars.
7. Private companies vs Public Companies -  private not available to buy/public available to public purchase.
Walmart is a public company because you can buy stocks off of it while some of its competitors remain private.
8.Growth Stocks - shares of a company whose earnings are expected to grow above average
I believe that Nike is a growth stock because its projected 52 week range is supposed to rise.
9. Risk - In a return risk is the possibility that one might lose some or all of the investment
When I reviewed my stock portfolio the return lost quite a lot compared to the original investment it was a higher risk than i thought it would be.
10. Small Cap - Companies that have a market capitalization between 300$ million and 2$ billion.
Small Cap companies are at a higher risk of losing all its money.
11. Mid Cap - Companies that have a market capatalization between 2$ billion and 10$ billion.
I would prefer to invest in Mid Cap companies because I prefer safer investments.
12. Large Cap - companies that have a market capatalization of more than 10$ billion.
I believe Apple is a good large cap company because of the way they release technology.

13. Dow Jones- an average price of 30 stocks in the United States
 When the Dow Jones is up, it helps our economy go up as well.
14. S & P 500- 500 large cap stocks that are commonly traded
 Walmart is a part of the S&P 500
15. Russell 2000 - index measuring the performance of 2000 smallest companies
 Small cap companies are part of the Russell 2000
16. Treasurery Bond- a bond with a fixed interest issued by the government
 A treasurery bond is paid for all by the government.
17 Inflation - The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling
With the inflation of the market buying groceries is difficult.
 18 Gross Demestic Product - The monetary value of all the finished goods and services produced within a country's borders in a specific time period
The GDP is a good inductor of knowing how the consumer and the producers are doing.
19 Infrastructure - The basic physical systems of a business or nation. Transportation, communication, sewage, water and electric systems are all examples of infrastructure
When the infrastucture of the US deteriorates it effects everyone in the country.
20 Currency - A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy.
The dollar is the U.S. form of currency.
21 Economy - The production and distribution of goods and services in a country
I can tell that the economy is doing badly because we are in a recession right now.
22 Economic System - Types of systems: Communism, Socialism
Our economic system in America is a Free Market which causes more competition.
23 Supply and Demand - People buy what you’re selling
The supply of corn went up so greatly that the demand went down because other crops weren’t being grown.
24 Interest - The charge for use of money
I chose First National Bank to put my money into because I get a nice interest rate compounded monthly.

Monday, September 12, 2011

9/11 Post

I believe that it is actually a draw at the moment. My reasons for saying this are that Osama is dead but the terrorists went after our economy and our economy is down at the moment so i say its even because in my opinion its all about shock value who can get the others mouth to drop in fear, amazement etc. Shock value rules because like when 9/11 struck america was shocked and paralyzed for a while, and when Osama was killed the terrorists were in shock that their leader was actually stuck down so I believe its a draw