1. Why did Milton think his chocolate candy would sell?
*Milton Hershey thought that chocolate would be a more permanent business in the long run. He also thought caramels were to rich to eat every day.

2. Where did he get the money to start making chocolate?
*When Milton Hershey was 18 years old, he decided to take his skills to Philadelphia and start his own business. He used money from is mother's side of the family, but his company failed. Milton started another business by making caramels with the support of his family, but his company failed. Milton Hershey had no financial help from his family. He rented a small warehouse room and began selling candy from a basket during the day. His sales increased, so he moved to a larger location. He had to borrow money to buy an expensive copper boiling pot. When the loan came due, Milton couldn't pay all of it. Luckily this time a British importer came and discovered the flavor of Milton's candy. His sales soared and at last, his companies succeeded. Milton decided that he was going to make chocolate instead of caramel.

3. What type of company did Hershey have before he incorporated?
*Milton Hershey owned a caramel company before he owned the chocolate factory.

4. What benefits do you think Milton gained from forming a corporation?
*More people came to Milton's store because he had a corporation, therefore making money.

5. Why would people today want to invest in the Hershey Company?
  1. *People today would want to invest in the Hershey company because it is a very popular factory. They also have very good business and the company is known for their long life.

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.
2. We wouldn't want to make our children smarter because then they would have a lesser work ethic. If you have no information in this company, you are taking a liquidity risk. You might not know if the stock is readily saleable on the open market on thje open market because you don't have any informaton on the stock.

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.
3. If you buy now, you are tyaking a financial risk. This is true because you do not know for sure that the stock's value is rising, the news only said that the value was rising. You can't always trust the news.

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.

  1. Is Revlon doing better or worse than yesterday? How do you know?
  2. Is Rite Aid nearer to its yearly high or low? Would this be a good time to purchase the stock? Explain.
  3. What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain.
  4. Did either Revlon or Rite Aid pay a 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.
  6. Would the same information be the most important information for people who already own stock in these companies? Explain.
  7. What would you guess was the general trend of the market on this particular day? Explain what information led you to this conclusion.

1. Yes, Revlon is better today than yesterday. I know this by looking at the chart it gives you. It says that Revlon is doing 71% better then yesterday.
2. No, Revlon is at neither is high or low. By looking at the chart it is not going to get to its early high. Rite Aid has been doing bad compared to last years high. I would not purchase their stock for this reason it would be bad.


5. The past were it shows how much the company makes each day. This is most important I think in purchasing a stock because if the company is doing good they know to get the stock and if it is doing bad they know not to.
6. Yes, the same information would be important to people who already have stocks in the companies. People who already have the stocks for the companies this should be important to them so they know if the companies are still doing good or not and if they should drop the stocks

Amount Invested
Interest Rate
Three Year Total Value
Years to Double (Rule of 72)
1000 x .03= 30
30+ 1000= 1030 1030 x .03= 1061x.03=31.83+1061=1093
.05 x 1000=
50+1000=1050x.03=32+1050= 1082x.03= 32+1082= 1114
.08 x 1000= 80
80+1000= 1080x.03=32+1080= 1112x.03=33+1112=1145x.03=34+1145=1179
100+1000=1100x.03=33 1133 x .03= 34 1167 x .03 = 35 +1167= 1202
1093 x 2= 2186 3/1093=x/2186 =6
1114 x 2= 2228 3/1114=x/2228 = 6
1179 x 2 = 2358 3/1179=x/2538 = 6
1202 x 2 = 2404 3/1202=x/2404 = 6
Amount Invested
Interest Rate
Length of Investment
Amount Earned
3 yrs
5 yrs
10 yrs
15 yrs
1000 x .06= 60 1060x.06=64 1124x.06= 67 + 1124 = 1191
1191x.06= 71 1262 x.06= 76 +1262 =1338
1338x.06=80 1338+80= 1418x.06= 85 1503x.06=90 1593 x.06=96 1689x.06= 101 + 1689 = 1790
1790x.06= 107 1897x.06= 114 2011x.06= 121 2132x.06= 128 2260x.06= 136 + 2260= 2396

You could earn money by investing in investments by the company giving you a dividend.