You have just inherited $100,000 from your millionaire great-uncle. The stipulation is that you must invest it in the stock market until you turn twenty-one. First, you must familiarize yourself with the stock market and then decide what some good investments might be.
research and respond to the following questions –
Learn the key terms and basic functionality of the stock market.
- Research the stock market. What is a stock? What is a share? What is an exchange? Identify the various exchanges where stocks can be traded and discuss their similarities and differences (i.e. NYSE, NASDAQ). What types of companies are traded on each?
- Research stock market performance indicators, such as the DOW Jones and S&P 500. What do the indicators measure? How do they help predict the performance of the market? What are their flaws?
- Research the sectors of the market. Identify three companies in each sector.
- Research companies in which you would invest. What characteristics do they have that make them good prospects? In other words, why might you choose to invest in each one of them?
- Compile the answers to these questions in a research report consisting of four to five well-developed paragraphs.
- Make sure you give credit to the sources you use.