PDF STOCK MARKET SIMULATION - Worcester Polytechnic Institute
Project Number: DZT-0901
STOCK MARKET SIMULATION
An Interactive Qualifying Project Report:
Submitted to the faculty of
Worcester Polytechnic Institute
In partial fulfillment of the requirements for
The Degree of Bachelor of Science
By
________________________ John Austin
______________________ Margaret Allard
________________________ William Barges
______________________ Chunwei Kuo
Approved by Project Advisor: Dalin Tang
__________________________
Date: December 17, 2009
Abstract
The objectives of this project were to research and explain the fundamentals of the stock market and to practice the skills necessary to make successful trades within the market. A four member team investigated the creation of the modern stock market, the histories of NYSE and NASDAQ, and the political factors that affect the stock market. Members also performed an eight-week stock market simulation, each specializing in a particular trading strategy and sector of the market. One member used fundamental analysis investing with a diverse portfolio; another used company history and projected growth to invest in the life sciences, the third member used historical analysis to invest in the gaming industry, and the last member used the income and growth strategies to invest specifically in shoe manufacturing and technology companies. Only the portfolio that focused upon the gaming industry produced a profit, while the other portfolios lost money. The results indicated that (a) companies that respond to customer feedback tend to succeed; (b) the gaming industry is running at full steam and that now is a good time to invest; (c) basing your trading decisions on the quality of a product or service is only useful in some sectors, like technology, while it is less useful in other sectors, like banking; and (d) finally, it was concluded that investing in the life sciences is a risky venture, because developing technology is kept far from the investors' evaluation and loss of FDA approval can cause unpredictable and devastating losses in stock value.
1
Acknowledgements
We would like to thank Professor Dalin Tang for his tireless guidance and the advice he has given. In addition, Investopedia deserves thanks for providing the great simulator we used to trade our stocks and manage our portfolios.
2
Table of Contents
Abstract ........................................................................................................................................... 1 Acknowledgements ......................................................................................................................... 2 List of Figures ................................................................................................................................. 5 List of Tables................................................................................................................................... 6 Chapter 1: Introduction ................................................................................................................. 10
1.1 Goals.................................................................................................................................... 10 1.2 Project Overview ................................................................................................................. 12 Chapter 2: Stock Market Overview ............................................................................................... 13 2.1 The Creation of the Modern Stock Market.......................................................................... 13 2.2 History of NYSE ................................................................................................................. 14 2.3 History of NASDAQ ........................................................................................................... 15 2.4 Political Factors Affecting the Stock Market ...................................................................... 16 Chapter 3: Online Stock Market Simulators................................................................................. 19 Chapter 4: Diversified Portfolio Utilizing Fundamental Analysis ................................................ 21 4.1 Strategies employed............................................................................................................. 21 4.2 Companies Chosen and Reasons ......................................................................................... 21 4.3 Weekly Simulation Reports................................................................................................. 25 Chapter 5: Investing in the Life Sciences using Company History and Projected Growth........... 37 5.1 Companies Chosen and Reasons ......................................................................................... 37
3
5.2 Weekly Simulation Report .................................................................................................. 45 Chapter 6: Video Game Industry Stocks with Historically Strong Market Performance.............. 57
6.1 Strategies Employed ............................................................................................................ 57 6.2 Companies Chosen and Reasons ......................................................................................... 57 6.3 Weekly Simulation Report .................................................................................................. 68 Chapter 7: Investing in Technology and Shoe Manufacturing Sectors using the Income and Growth Strategies .......................................................................................................................... 78 7.1 Strategies employed............................................................................................................. 78 7.2 Companies Chosen and Reasons ......................................................................................... 80 7.3 Weekly Simulation Reports................................................................................................. 88 Chapter 8: Comparison of Cumulative Results and Discussion .................................................. 100 8.1 Diversified Portfolio Utilizing Fundamental Analysis ...................................................... 100 8.2 Investing in the Life Sciences using Company History and Projected Growth................. 103 8.3 Video Game Industry Stocks with Historically Strong Market Performance ................... 103 8.4 Investing in Technology and Shoe Manufacturing Sectors using the Income and Growth Strategies ................................................................................................................................. 110 Chapter 9: Conclusion ................................................................................................................. 112 References: .................................................................................................................................. 114 Appendix ..................................................................................................................................... 118 List of Stock Exchanges around the World ............................................................................. 118
4
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- pdf price history
- pdf using bloomberg to get the data you need
- pdf finance 30233 fall 2019 m j neeley school of business tcu
- pdf cumulative description date market price split adjusted price
- pdf lognormal model for stock prices ucsd mathematics
- pdf programming case a methodology for programmatic web data
- pdf chapter 8 the stock market
- pdf excel use the function bds ticker
- pdf stock and bond market indexes major stock market indexes
- pdf stock option price prediction machine learning
Related searches
- stock market symbols and prices
- stock market live streaming
- stock market symbols lookup
- watch the stock market live free
- yahoo finance stock market news stock quotes
- stock market today stock news market watch
- stock market current stock prices
- stock market simulation for students
- best stock market simulation game
- pre market stock market watch
- stock market live streaming stock charts free
- stock market pre market hours