MANG6221: You are Acting as an Investment firm that Received $100,000 from a Client to Invest in Five Stocks: Stock Market Analysis Report, UOS, UK

University University of Southampton (UOS)
Subject MANG6221: Stock Market Analysis

Stock Portfolio Project

Congratulations, your Investment Firm has just received $100,000 to invest in 5 stocks!

To begin this project, you will need to research 5 companies that meet the criteria below.

  • ALL Stocks MUST be bought on January 22. Track the stocks in your portfolio daily.
  • All Stocks MUST be sold onMay 7th 
  • portfolio assignment is due on or before May 17th (think of it as your final exam).

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Select the following stocks for your portfolio:

  • one stock for your portfolio from the Dow Jones Industrial Average stock list https://www.cnbc.com/dow-30/ (Links to an external site.)
  • three stocks from the New York Stock Exchange (www.nyse.com (Links to an external site.)) and/or the NASDAQ (www.nasdaq.com (Links to an external site.))
  • one of the latest initial public offerings (IPO). IPO selections may be no older than April 2019. You can find an IPO via the NYSE, NASDAQ websites, or IPOSCOOP.com (Links to an external site.) . (No foreign traded IPO’s, US only.)

You must divide the $100,000 evenly among each stock ($20,000 worth of each stock). If there is enough money left over to buy another share of stock from one of your companies, you may do so. Remember to add dividends to your total if one of your stocks issues them.

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Ex: How to buy $20,000 of GE Stock: 

  1. Go to https://finance.yahoo.com/(Links to an external site.) and type GE in the search bar then select General Electric
  2. Make sure that the market is closed for the day (4 pm eastern time) and write down the stock price at closing. For example, GE’s price at closing is $8.71.
  3. Then divide your $20k by $8.71 to find out how many shares you can buy. (20,000/8.71=2,296.21)
  4. As you can see, there are 21 cents left. Now, multiply your share price by the shares without the decimal point. (that’s $19,998.16 so the group has some leftover money (in this case $1.84)). When stock prices are in the hundreds of dollars, you may have a lot more money to invest. What you can do now is to add the leftover amount for all five companies and buy extra shares on any of your five companies.

I hope that makes sense. Please reach out if you need clarifications!

  •  Introduction

You are acting as an investment firm that received $100,000 from a client to invest in five stocks.

Write a brief description of the companies you have selected (one paragraph or two per company). Briefly explain the reasoning behind your company selections. Create a chart listing the companies you have selected, the price per share of each stock, and the total amount invested.

  • Analysis

Monitor your stocks daily (Monday through Friday). Note the daily closing price of each stock. Graphically display the trends of each stock on a line graph. Discuss the elements of the business environment that may have an impact on the value of your stocks. Discuss the influences that the internal and external environment has on your companies during the observation period. Consider management decisions and/or changes, economic influences, consumer trends, domestic and global competition, political effects, etc. Take note of the dates that these events occurred and the corresponding fluctuation of your companies’ stock prices. Avoid plagiarism! You should write at least three pages per company.

  • Conclusion

Stocks must be sold at the close of business on May 7th. Use https://finance.yahoo.com/ (Links to an external site.) for graphs!

Provide a list of each stock, the initial (buy) price per share, the closing (sell) price per share, profit/loss for each company stock, and your OVERALL gain or loss for your portfolio (in dollars and percentage).

Use the Yahoo Finance graph to plot your five stocks and compare them to the S&P 500 and the Dow Industrial Average, then comment on your stock performance to the indices. Comment on which stock (IPO, DOW, NYSE, NASDAQ) performed best? Which stock performed worst? Write a one-page reflection about what you learned during this assignment. If you were investing real money, would you invest differently? Why or why not

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