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F. Naz
F. Naz, Bachelor's Degree
Category: Business and Finance Homework
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Experience:  Have completed B.COM and CA Finalist
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Select five companies purpose of tracking the stock market,

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Select five companies for the purpose of tracking the stock market, conducting research on the companies, and preparing company reports. You will be investing in common stocks only, but you will be able to select from two national stock exchanges, the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX) and the NASDAQ.
On Friday of the third week from your starting date, make a simulated $50,000 purchase in the common stock of your five selected companies (Approximately $10,000 each; you have to buy whole shares and not a fraction of a share). To determine purchase price, check one of the business websites suggested above or in the External Links section of Blackboard. The Money section of USA Today or the Business section of The Washington Post is a good source for tracking stock market quotes.
Post Stock Market project part 2 here - In this project you are buying SPY and selling QQQ short.
Index purchase (Stock Market Part 2): simulate a $50,000 purchase of SPIDERS (Trading symbol SPY). SPIDERS stands for shares of an Exchange Traded Fund traded in the AMEX. SPIDERS mimics the Standard & Poor 500 Index, a broad market index. This strategy will work well during the "bull" market. When the stock market goes up, you gain the average of the market return. This strategy worked well during the long bull market from 1983 to around March 2000.
Selling short an Index Fund (Stock market Part 2). Short-sellers are investors who borrow stock from a broker and sell it in the market, betting that the stock price will fall so they can buy it back at a lower price. This strategy works well during the bear market. The bear market started in March 2000. For a period of slightly more than 2= years, all major market indexes lost considerable ground. The Dow Jones Industrial Average dropped from 11,500 to around 7,800, the S&P 500 dropped from more than 1,500 to around 800, and the NASDAQ Composite Index dropped from more than 5,000 to around 1,200.
Deposit a simulated $50,000 in a broker's account. Borrow stock from the broker and short-sell "QQQ", the trading symbol of shares of an Exchange Traded Fund traded in the AMEX. QQQ mimics shares in the NASDAQ 100 Index. On the 9th week from your starting date, buy back all shares of QQQ. If the price of QQQ goes down, you make a profit by selling high and buying low. During less than 10 months in the year 2002, some ultra short mutual funds employed this strategy successfully. For example, ProFunds: Ultra Short OTC investment fund gained 136%. However, shorting can be a risky investing strategy because unlike buying stock, where you cannot lose more money than you put in, short-selling losses can be unlimited if the borrowed stock keeps rising. Leo Guzman, president of Guzman & Company, a brokerage firm, warns shorting should be left for the professional investors.
Record the dates of buying and selling, number of shares, price per share, total purchases and sales. For the purpose of computing gain or loss, use $100 total for the broker's commissions and the fund's management fee.
Submitted: 1 year ago.
Category: Business and Finance Homework
Expert:  F. Naz replied 1 year ago.

Please mention your deadline, thanks.

Expert:  F. Naz replied 1 year ago.

It seems that there are two assignment, please confirm and also mention the length of written work (if any) in pages or word limits, thanks.

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