Buying Questions for first company
1. -How did you decide the quantity (i.e. why did you purchase 5,000 shares instead of 10,000?)?
Since our game is being played for a restricted time, I thought that there was no point to try and save the 10mil $ I was given so every time i bought shares from a company i tried to invest as much as I could into as many shares as possible. This way when the company hopefully goes up I will make even more money on the few companies I invested in, with all the shares i bought.
2. -What made you choose “x” (i.e. what do you know about that product?)?
I decided to invest in the ABB company because I know a lot about them. They are a partner in my fathers company who serves electric, water and gas utilities. Having asked advice on what to invest in, my father suggested it would be a wise investment.
3. Where is there an abundance of this products main resource and describe that areas political and social climate (i.e. does it come from Africa? Is it located in an area where there is political unrest?)?
To build their power plants ABB uses a lot of electricity. Some of this electricity is produced by burning coal. China is the major producer of coal in the world. China is a developing country who’s economy is on a steady incline, and I believe that the importation of metals are helping them a lot on this climb. The exportation of coal has helped China boost its economy with 2380.0 tons produced in 2008 alone.
4.-Provide a graph showing the market history of stock “x” over the past 20 years (you can use excel for this) and provide a forecast for its future
http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1267477200000&chddm=886006&chls=IntervalBasedLine&q=NYSE:ABB&ntsp=0
Above is a chart of the past 10 years of company history. Considering the stable up climb
from 2002 to 2008 I believe the company will keep making more and more money every year, thus the numbers will keep rising.
