Today we got a new project. It is about shares that you can obtain from companies. This meaning that in that company there are shares in which they are sometimes sold and bought. The reason people sell their shares in companies is, if they see that they are losing money or the value is starting to drop, then they may sell it so that they don't loose money. However, people buy shares when they see that the amount of change they would make is starting to increase and they would get more Money.
Now you may think...well why would people buy shares if they know that maybe the only reason people are selling it is because the amount of change is dropping? Well, sometimes by looking at the rate of increase and decrease of the company's "last trade" price you can kind of predict how well it will do. Therefore if it seems that the money the company makes may be increasing then people might take the CHANCE and buy it. Also people would look at who's selling it and who's buying it because for example if a major, well-known, company is buying it then that probably means that it's a good share to buy. However there is no absolute way of knowing when to buy it's share and when not for in the end it is kind of like, actually a lot like, betting; all a game of chance.
Therefore based on that explanation our project was to further understand this by pretending that we have 100 000$ that we need to spend on 5 companies. We are to choose those 5 companies based on looking at its rate of decrease and increase in the amount of money, the amount of money its share is, who's selling it, who's actually buying it, and trying to predict if this is the one we should buy a share form.
This project will go on for 6 weeks therefore we need to check the difference of the change every Tuesday and Friday. After the 6 weeks are done we are to give a presentation explaining which companies we choose, why we choose them, how well they did (did we loose money/gain money?), etc.
Now you may think...well why would people buy shares if they know that maybe the only reason people are selling it is because the amount of change is dropping? Well, sometimes by looking at the rate of increase and decrease of the company's "last trade" price you can kind of predict how well it will do. Therefore if it seems that the money the company makes may be increasing then people might take the CHANCE and buy it. Also people would look at who's selling it and who's buying it because for example if a major, well-known, company is buying it then that probably means that it's a good share to buy. However there is no absolute way of knowing when to buy it's share and when not for in the end it is kind of like, actually a lot like, betting; all a game of chance.
Therefore based on that explanation our project was to further understand this by pretending that we have 100 000$ that we need to spend on 5 companies. We are to choose those 5 companies based on looking at its rate of decrease and increase in the amount of money, the amount of money its share is, who's selling it, who's actually buying it, and trying to predict if this is the one we should buy a share form.
This project will go on for 6 weeks therefore we need to check the difference of the change every Tuesday and Friday. After the 6 weeks are done we are to give a presentation explaining which companies we choose, why we choose them, how well they did (did we loose money/gain money?), etc.

1 Comments:
At 7:46 AM,
Bavithra said…
*ahem* *ahem* umm.....look who was talkin bout me updating ma blog......ur blog's almost 1 month old. Go look @ ma blog for perfection....LOLZ!!!
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