Reference no: EM131957427
Assignment: Stocbk Market Simulation Report
Instructions
You will conduct a stock market simulation by "purchasing" at least 2 "blue chip" and 3 "growth" stocks, then monitoring their value over a 1-week period. After that period, you will document each step of the process, taking care to explain reasons for choosing the stocks, fluctuations in stock price, and key economic pressures that reflect historic trends and issues. This report must be 2-3 pages and include a specific list of the stocks, their symbols, purchase prices, and closing prices at the end of the week.
Choosing stocks to monitor for this assignment is up to you, except for two conditions. First, 2 of the stocks must be large capitalization, blue chip stocks from the New York Stock Exchange. Second, 3 of the stocks must be targeted "growth" stocks with the potential for wide swings in stock value. The more volatile the stock price, the better for this part of the assignment. You may use the provided stock market simulator or merely monitor the stock prices using an app, computer program, or financial publication.
The most important part of the assignment involves the analysis, which must address the following: a well-organized and well-written explanation for the choices of stocks, an explanation of each stock price fluctuation based on research in the financial press, and a bibliography of the research. Research in the financial press is required for this assignment. Important research tools include Bloomberg, Fox Business, the Wall Street Journal, Business Weekly, the Financial Times, or widely consulted financial news networks and wire services. You MUST properly cite the sources for your market research using current Turabian style.
The best submissions will involve you researching key companies headlining the financial news the previous week. Review existing commentary on the company following the suggestions above, and note the starting price on Monday. Then, each night, conduct a quick search of that company in financial news services or cable financial news shows. Take notes on the analysis, but understand this reflects the views of financial journalists, not historians. Be certain to record and cite where you find each day's information. (You may have to really dig through the Turabian manual to determine the proper citations.) Then, at the end of the week, record the stock's closing price on Friday, and write an analysis of all 5 stocks' fluctuations for the week. Be sure to cover long-term trends of economic history when explaining the change. On a few occasions, one or more of your stocks may fluctuate very little. This may be normal, but you must still explain the stability of the company's value based on long-term economic and historical evidence.
Finally, as you address questions 2 and 3 (below) in your summary, you may footnote citations for the financial publications or videos you consulted.
Use the following guidelines to compose your report:
1. List of all 5 stocks.
2. Why was each stock chosen? Be sure to explain what impressed you enough about the company to monitor its price. Do not simply state that you chose Apple because you have an iPhone or Walmart because you shop there. You must provide well-grounded, well-researched reasons using commentary and analysis found in financial publications, networks, and websites. If you use cable financial news shows, you must use the proper Turabian citation for that specific episode/date of your research.
3. To what extent did the stock's price fluctuate? Why did this occur? Again, base your explanation on your research in financial sources. What economic pressures caused the fluctuation?
4. Include a bibliography in current Turabian style (not included in the 2-3-page length requirement).