9/14/10
1. Why did he think his candy would sell?
1. Because the caramels were too rich to eat every day, so he concentrated on making milk chocolate.
2. Where did he get the money to start making chocolate?
2. He was supported by his mother's family.
3. What type of company did hershey have before he incorporated?
3. It was called the Lancaster Caramel Company. And sold Caramels.
4. What benefits do you think Milton gained from forming a corporation?
4. He could raise huge funds from investors because it offers them attractive features.
5. Why would people today want to invest in the Hershey Company?
5. Because it's a solid company and continues to thrive today.

9/20/10


  1. Is Revlon doing better or worse than yesterday? How do you know? 1answer. It did worse than yesterday. I could tell because I looked at the chart and it was lower than yesterday.
  • 2. Is Rite Aid nearer to its yearly high or low? Would this be a good time to purchase the stock? Explain.
  • 2answer. Rite Aid is closer to it's yearly low. It would be a good time to purchase stock because its cheap and it's already low so it will only rise. Therefore its a good investment.
  • 3.What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain.
  • 3answer.Rev and Rad. No, because they took the first three revlon, and they took the first,middle and last letter of rite aid.
  • 4. Did either Revlon or Rite Aid pay a dividend?
  • 4answer. No, neither revlon or Rite Aid did pay the dividend.
  • 5. Which two pieces of information shown on this stock chart would you consider most important for people to find out before purchasing the stock of a company? Explain.
  • 5answer. Buy it low sell it high, and the ticker symbol are most important to know before buying a stock.
  • 6. Would the same information be the most important information for people who already own stock in these companies? Explain.
  • 6answer. No, because they know the information and it won't be useful, if they already know it.
  • 7. What would you guess was the general trend of the market on this particular day? Explain what information led you to this conclusion.
  • 7answer. The trend of the stock market today is that it went up. We found this by looking at Hasbro, Apple, and BP, which all went up.
  • Example:
    • Year 1: $1,000 x 3% (.03) = 30 + 1000 = 1,030
    • Year2: 1,030x.03=31+1,030=1,061
      Year 3: 1, 061 x .03= 1,061 = 1,093
    • (Three year total value) Years to double: 72 divided by 3 =24.
Amount Invested
Interest Rate
Three Year Total Value
Years to Double (Rule of 72)
  • ||= $1000 ||= 3% ||= 1093 ||= 24 ||
  • ||= $1000 ||= 5% ||= 1158 ||= 14.4 ||
  • ||= $1000 ||= 8% ||= 1259 ||= 9 ||
  • ||= $1000 ||= 10% ||= 1331 ||= 7.2 ||
RULE OF 72: Estimate of an investments doubling time( the number in the title [72] divided by the interest.)
  • SAVING: Is the money you have NOT spent yet. So if you have 60,000 in your bank it is your savings.
  • INVESTMENTS: Investing in something is when you put money toward something and hope to earn profit off of it.
  • COMPOUND INTEREST: Interest + Principal = Compounding
  • Diversification: Reducing risk by investing in a variety of assets.
    • || 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 || || 2396


=Conservative, Moderate or Speculative=f

Procedure: Investors can gain money from performing exceptionally well with their stocks.

Activity sheet
Situation 1: If each investor gets a dividend of 3 dollars per share then investor 1 will have $300, investor 2 $450, Investor 3 $1500, and investor 4 $1875.
Situation 2: If each investor gets a dividend of $1.50 per share investor 1 will have $1500 and investor 2 will have $2250.
Situation 3: It can invest it in order to gain more money.
Situation 4: If he sells his stocks he’ll gain $3000.
Situation 5: If all the stock holders sell their stocks investor will loose $6271.
Situation 6: if he got a dividend of $10 for 500 shares he will only loose $1271.
1:People who are closer to retirement might be interested in dividends because it can help them save up for retirement and dividends take longer to obtain. While a young investor might just be interested in earning money fast.

2:If a company has good “Health” people will be able to gain more dividends while if a company is unhealthy they won’t gain money.


Directions: Decide if the following investments are conservative, moderate or speculative by explaining your answer in complete sentences.

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
You aren't really taking a risk because the stock hasnt fallen in two years.
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.
You are taking a big risk because you dont know what it is, if it's going to be popular, or if its even gonna work.
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.
You are taking a big risk because your buying a stock that has risen before the product even comes out.
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. ANSWER: moderate. Because its gone up but not very much.