ECONOMICS



StockPortfolioInstructionPacketMilton HSECONOMICSSTOCK MARKET SIMULATIONANGELRULES:You will be working in groups of 2 to complete your digital portfolio. Each group has $100,000 to invest.You must invest in 3 stocks (no more) from three different industries. Below, I have listed some examples of industries you can consider. This is not an exhaustive list.technology oilretail--apparel/grocery/restaurant transportation--airline/railroadindustrial/manufacturing lodging utilities broadcasting/publishingfinancial aerospace/defense You may invest in stocks from NYSE, NASDAQ, or AMEX only.You may not buy preferred stocks (pf) OR stocks priced less than $3.00.At all times, you should not have more than $100 in your balance.A transaction fee of $9.99 must be paid on all buy/sell transactions.You must hold each stock you own for at least 3 weeks.You may buy/sell at any time during the semester. However, I must approve your transaction on the day you make it.Even if you are absent on stock market days, you are still responsible for updating your portfolio. At the end of the semester, you and your partner will earn a joint grade based on the following:COVER SHEET 5 pts.Include names of partners, class period, date, cover artBALANCE SHEET 30 pts.Document all transactions (buy and sell) on your balance sheet. At the end of the simulation, you will liquidate your portfolio. Record in the balance column your net profit or loss, stated as the actual $ amount and as % of investment.TRACKING SHEET 15 pts.Document the closing price per share for each stock in your portfolio each day we check stocks. 3 STOCK INFO SHEETS 10 pts. each; (30 pts. total)Research the stocks you have chosen to purchase. Complete the requested details for each stock on the info sheets.JOURNAL/ARTICLE SUMMARIES 90 pts.You must keep a journal with entries for each week of the simulation. Decisions (buy/sell/hold) you make during the semester should be explained in detail in the entry for that date. Each entry should document date, stocks involved, portfolio activity, and justification for the decisions made. You should also reflect on current news events and their effects on the market as a whole and particularly your stock(s). Each journal entry must refer to one news article. The title, periodical name, article date and author should be clearly stated in the journal entry. You should also write a paragraph summarizing the facts and details from the article. See attached instructions for format for summarizing articles.BUSINESS REPORTS 20 pts. each (60 pts. total)You must research, write, and document 1 report about each business in your portfolio (3 total for the portfolio). (A more detailed instruction sheet is included in this packet.) Include the history of the company, basic facts regarding the company, and any recent developments. This information can be found on the company’s website, the Motley Fool, Dow Jones Business Directory, MarketWatch, Yahoo Finance, Google Finance, the company’s annual report, and news articles. Also include a bibliography of all sources used for each report. Sources must be cited in MLA format.WEEKLY ACTIVITY SHEETS 5 pts. each (50 pts. total)Include all activity sheets completed in class each stock day. This includes the practice sheets done at the beginning of the simulation using Marketwatch/KO and/or the Stock T/F sheet. You will be given a classwork grade for each of these sheets, in addition to your portfolio grade. These activity sheets should be kept in your portfolio/partner folders in the classroom.SELF-EVALUATION SHEETS 5 pts. each (15 pts. total)Include all self-evaluation sheets for periodic checks of your progress. Your portfolio should be up-to-date at each evaluation period. You may be given a classwork grade for each of these sheets, to be determined at the time.GRAPHS 10 pts. each (30 pts. total)You must have individual graphs for each stock in your portfolio indicating closing prices for each week during the semester. This should be done using Excel. The prices should be on the vertical axis; dates should be on the horizontal axis. Actual prices should be noted on each point of the graph. If you sell a stock during the semester, you must create a new graph for the new stock.SUMMARY SHEET 15 pts.Write a summary of this learning experience. Include what you learned about stocks as investments, how the stock market works, the role the market plays in our economy, and what you would do the same and differently if you had it to do over again. Your grade is not based on how much money you make or lose. Your grade is based on the quality and completion of the portfolio requirements as stated above.The team that makes the most money will receive 10 extra points added to their point total (not the final grade)AUTOMATIC POINT DEDUCTIONS FROM FINAL PORTFOLIO GRADElate turn in: 10 pts. deducted per daycontents out of order in portfolio: 5 pts. deductedTOTAL POINTS 340 = 100%***PARTNERS ARE EXPECTED TO SHARE THE WORKLOAD. IF ONE PERSON IS NOT DOING HIS/HER SHARE, IT IS YOUR RESPONSIBILITY TO REPORT THIS TO ME IMMEDIATELY SO THAT AN ARRANGEMENT CAN BE WORKED OUT.DIRECTIONS FOR BALANCE SHEETPurchasing stock:Record the purchase date.Record the name of the stock. It is also helpful to write down the ticker symbol.Determine the amount of $ you want to invest and calculate the number of stocks you can buy using the closing price.To calculate total cost, multiply the number of shares bought by the trading price.Transaction fee is $9.99.To calculate the total transaction, ADD total cost and commission.To keep a running balance, SUBTRACT the total transaction from your current balance. Enter in the balance column.Reminder: you should have less than $100 in your account at the end of each day.Selling stock:Record the sell date.Record the name of the stock.Record the number of stocks you want to sell.Use the closing price.To calculate total cost, multiply the number of shares sold by the trading price.Transaction fee is $9.99.To calculate the total transaction, SUBTRACT commission from total cost.To keep a running balance. ADD the total transaction from your current balance. Enter in the balance column.Reminder: you should have less than $100 in your account at the end of each day. If not, you need to buy more shares to get your balance under $100.After your portfolio has been liquidated at the end of the simulation, be sure to record your final balance, your net profit or loss ($ amount) and your % profit or loss.Note:You may buy and sell at any time during the week. However, any transactions must be approved by me on the day of the transaction.ECONOMICSSTOCK PORTFOLIOJOURNAL ENTRIES/NEWS ARTICLE SUMMARIESANGELWhen assigned, choose a news article to read and reflect on that has some connection to a stock in your portfolio. After reading the article, write a brief summary of the article, using the format below. After writing the summary, write your journal entry, reflecting on how the details of the article you read may affect your stock, portfolio, and/or the market. Also, explain what decision(s) you’re making with your portfolio each week. Are you buying and selling or holding? Why? FORMAT:Article titlePeriodical name (for example, Wall St. Journal or BusinessWeek)Date of articleAuthor's nameSummary of article (minimum of a full paragraph, longer if the article is lengthy and detailed)SUMMARY should include details and specifics. You should read the article then write the summary in your own words. DO NOT COPY AND PASTE! Copying directly from a source will result in 0 points for that portion of the portfolio.After the summary, write your weekly journal entry by REFLECTING on what you have just read, making assumptions about the impact of what you just read will be on your stocks and/or portfolio. Both the article summary and your reflection will be the journal entry for the week.STOCK PORTFOLIOBUSINESS REPORT FORMATANGELBullet the following: (this information can be found under “profile” on Marketwatch)Name of companyStock Exchange on which the company is listedLocation—corporate headquarters, phone number, web addressNumber of employeesIndustryFiscal Year information: (this can be found under “Financials - income statement and balance sheet” on the Marketwatch site) Remember to cite the dollar amounts correctly. Millions? Billions? Add a B or M or add zeroes to cite the $ amountTotal revenue Gross ProfitNet incomeLast paid dividend (DIV) found on the basic chartEarnings estimate per share (EPS) found on the basic chartTotal assetsTotal liabilitiesTotal shareholder equityBusiness Summary info for this section can be found under “profile – company description (expanded)” and “headlines” on the Marketwatch page]Paragraph form, single spaced, written in your own wordsCurrent description or profile of the companyMajor news and issues currently facing the companySuggested sources to use:MarketwatchGoogle FinanceYahoo FinanceDow Jones Business Hoover’s Business Company websiteCompany’s most recent annual reportYou must cite your sources, using accepted bibliographic format (MLA), at the end of each business report. DO NOT copy and paste which will result in 0 points for this section.Creating Graphs in ExcelOne of the requirements for your stock market project is that you create individual graphs for the stocks in your portfolio. You should use Excel to create these graphs. The following steps should help you create the graphs.Open Excel. Choose “blank workbook”In column A, list the dates that you checked your stock prices. In column B, list the prices for one of your stocks on the corresponding dates. Your spreadsheet should look something like this when you are done:Highlight the parts of column A and column B in which there is text.Click on “Insert.”Click on the first line graph picture in recommended charts section. Choose the first graph under 2-D Line.Click on the “+” icon and choose Chart Element.Click on “Data Labels.” Choose “Above.”Click on “Chart Title.” Type in the name of the stock.You may have to reposition the graph on the page in order to print it properly.Repeat the same steps for your other graphs. When you are finished, copy and paste the graphs into your digital portfolio. If you are having problems formatting, copy and paste as a picture.Your finished graphs should look like this:STOCK PORTFOLIO BALANCE SHEET Balance--subtract # X --------- = ---------- +/-* 9.99 = -------- total $ trans when↓ ↓ ↓ buying. Add when selling)DateStockNo. BoughtNo. SoldClosingPriceTotal $ Purchase/SellTrans. Fee*($9.99)Total $Trans.Balance$100,000*Add the transaction fee when buying shares; subtract the transaction fee when selling sharesStock Portfolio Tracking SheetDateStocks Closing Price → ................
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