1. Why did Milton think his chocolate candy would sell?

He thought it would sell because he said "Caramels are too rich to eat everyday."

2. Where did he get the money to start making chocolate?

He got the money to make his chocolate from selling his caramel company.

3. What type of company did Hershey have before he incorporated?

He had a caramel business.

4. What benefits do you think Milton gained from forming a corporation?

It raised substantial sums from investors because it offers them attractive features. One attractive feature is limited liability, which means an investor's potential loss is limited to the amount invested in the company's stock. Another attractive feature is a corporation's long life.

5. Why would people today want to invest in the Hershey Company?

They would want to invest in the Hershey Company because it offers limited liability and corporations long life.

1. Is Revlon doing better or worse than the previous trading day?

They have not gone up or down since the last trading day

2. What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain.

REV is Revlon, RAD is Rite Aid. I am not surprised with Revlon because the symbol is the first three letters of the name. Rite Aid is the one I am surprised with because it has nothing to do with RAD.

3. What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain.

The Ticker Symbol For Revlon is- REV

The Ticker Symbol for Rite Aid is-RAD

I am not surprised it makes sense and I could not pick a better ticker symbol for both.


4. Did either Revlon or Rite Aid pay a dividend?


Both Revlon and Rite Aid paid a dividend and are both in red.

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.

Buy the product at a cheap price. Then sell it at a higher price. The ticker symbols are most important to have before you buy the product.

6. Would the same information be the most important information for people who already own stock in these companies? Explain.


Yes, because all of the information on the website is important. It is important because it elaborates on how to buy stock and what you might want to do.

7. What would you guess was the market trend on this particular day? Explain what information led you to this conclusion.

I think the market trend would be down today. The reason is that Tyson Meat Companies' market is down.

Investment 1: 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



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.
If you are buying this stock you are probably taking market risk.

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.
If you are buying the stock, you are taking market risk. This is because the stock price rose because of the buying of stocks because of the news about electric cars. If interior electrics car was a failure and everyone sold their stock the price would go down

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.

Amount Invested Interest Rate Length of...
Interest Rate
Length of Investment
Amount Earned
$1000
6%
3 years
$1,191.02
$1000
6%
5 years
$1,338.23
$1000
6%
10 years
$1,790.85
$1000
6%
15 years
$2,396.56

1. Why might someone close to retirement be more interested in the dividends paid by investments than a young investor?

They would want to earn extra money to prepare for retirement. Since the needed money for retirement is now at around a million, they really need to earn extra money. It is also less risky.

2. What other measures of a company’s “health” would you like to have before deciding to invest in the company?

You would want to look at if they have any new products on the market. If they had a bad time in the company like BP and the Gulf Oil spill, you would not want to invest as most people will be selling the stock, which will result in a lower stock. If they have a new product, their stock could go up because people want to be a part of the action.

Look at the stocks your team has purchased or plans to purchase. Do the stocks cover a broad range of industries? What industries do they represent?
Yes they do, they represent airline industries, technology, electric utilities, shipping, magazines, and even food industries.

Use the Internet to research different mutual fund companies. You can search using http://finance.yahoo.com or www.google.com/finance. List three mutual fund companies
AMAGX AMANX KYTFX

Using the Internet, find the names of three funds that hold shares in industries that interest your team.

There are a number of funds that have been put together for particular social reasons; for example, to further the cause of women’s issues, or to encourage investment in companies with environmentally friendly business practices, or companies that are considered to be family friendly. Locate two funds that would fall into this category.