1. Why did Milton think his chocolate candy would sell?
Milton believed that he could make a really good milk chocolate at a price
that everybody could afford.
2. Where did he get the money to start making chocolate?
His parents gave him to money to start the business.
3. What type of company did Hershey have before he incorporated?
He started a carmel company.
4. What benefits do you think Milton gained from forming a corporation?
He got more money
5. Why would people today want to invest in the Hershey Company?
The company is still running and selling a lot of products.

1. Is Revlon doing better or worse than the previous trading day? How do you know? It is doing worse right now but it is slowly rising.
2. Is Rite Aid nearer to its yearly high or low? Would this be a good time to purchase the stock? Explain. Yes it is a good time to purchase a stock because it is very high right now.
3. What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain. Rite aid is RAD, Revlon is REV.
4. Did either Revlon or Rite Aid pay a dividend? Yes
5. Which information shown on this web site would you consider most important for people to find out before purchasing the stock of a company? Explain. You need to know if it is higher or lower so you know if you should purchase the stock.
6. Would the same information be the most important information for people who already own stock in these companies? Explain. Yes you would want to know if it is rising or falling to see how your stock is doing good.
7. What would you guess was the market trend on this particular day? Explain what information led you to this conclusion. Market risk is a the price of securities is set by the forces of supply and demand. Investment risk has a very large damage risk and a mega project. Legal risk is risks that counter party and are not legal or able to enter into a contract. Investment1: Jax Company provides gas and electric to your area. Its stock has risen slowly and steadily over the last two years. It pays an annual dividend of $4 per share per year. You own 200 shares, so the company pays you a yearly dividend of $800. What type of risk are you taking by investing in Jax Company? Explain. The type of risk is capital risk because they may lose money. Investment 2: Watching the news, you learn a new drug is coming out that supposedly makes children smarter. You’ve never heard of the drug manufacturer, but you decide to invest in this company. Why wouldn’t we want our children smarter? If you have no other information and plan to invest in this drug company, what kind of risk are you taking? Explain. We believe the risk is liquidity risk because we are investing in a company that might not be able to make them due to government. Investment 3: Interior Electric announces it is creating an all-electric car, but it hasn’t come out yet. Based on the news, its stock price has increased 20% in one month. If you buy the stock now, what type of risk are you taking? Explain. I think it is a market risk because the stock increased in a short time and will have a lot of time decrease. Investment 4: ALLON Clothing Company’s profits have almost doubled this year. The price of the stock has gone up from $48 to $56 over the same period. If you were to invest in this stock, what degree of risk would this investment present? Explain. Investment risk because they are investing in something that has increased in money over the years.

Amount Invested
Interest Rate
Three Year Total Value
Years to Double (Rule of 72)
$1000
3%
1030
24
$1000
5%
1050
14.4
$1000
8%
1080
9
$1000
10%
1100
7.2

Amount Invested
Interest Rate
Length of Investment
Amount Earned
$1000
6%
3 yrs
1191
$1000
6%
5 yrs
1338
$1000
6%
10 yrs
1790
$1000
6%
15 yrs
2500