1. Why did Milton think his chocolate candy would sell?
-Milton believed it would be a more permanent business in the long run.
2. Where did he get the money to start making chocolate?
-In the 1900 he sold the Lancaster Caramel Company for 1$ million dollars. The money was used to build a plant in a farming area.
3. What type of company did Hershey have before he incorporated?
-Milton Hershey had a Caramel company.
4. What benefits do you think Milton gained from forming a corporation?
-Milton's chocolate company grew rapidly and began making new products. Hershey kisses were introduced in 1907, Mr. Goodbar in 1925 and Syrup in 1926.
5. Why would people today want to invest in the Hershey Company?
-Because it rapidly gains value and produces new products.

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
-We are investing in a capital risk because we're concerned that we're going to 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 are taking a liquidity risk because we're investing in a market that may not be saleable.

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.
-We might be taking a market risk because their electric car might not work.

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.
-This is a riskless investment because the profit is going up

1. Is Revlon doing better or worse than the previous trading day? How do you know?
1. It is doing better because the average is much higher than on Friday.

2. Is Rite Aid nearer to its yearly high or low? Would this be a good time to purchase the stock? Explain.
2. It is closer to its yearly low and it would be a good time to purchase this stock because it is very cheap and if it goes up you make money.

3. What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain.
3. Rite Aid’s ticker symbol is RAD and Revlon’s ticker symbol is REV. I am not surprised because the ticker symbols are shorter versions of the words and they use the same letters.

4. Did either Revlon or Rite Aid pay a dividend?
4. They both did because they went up and higher in the green.

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.
5. The chart would be the most important information because it shows the lows and highs over long periods of time.

6. Would the same information be the most important information for people who already own stock in these companies? Explain.
6. Yes because it shows if their company is dropping or raising and it tells them when to sell their stocks.

7. What would you guess was the market trend on this particular day? Explain what information led you to this conclusion.
7. The market trend today was primary because the stocks stayed basically in the same place.

  • external image insert_table.gif
    • 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.
    • 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% ||= $1,093 ||= 24 ||
  • ||= $1000 ||= 5% ||= $1,158 ||= 14 ||
  • ||= $1000 ||= 8% ||= $1,260 ||= 9 ||
  • ||= $1000 ||= 10% ||= $1,331 ||= 7 ||

Amount Invested
Interest Rate
Length of Investment
Amount Earned
3 yrs
5 yrs
10 yrs
15 yrs

1.Why might someone close to retirement be more interested in the dividends paid by investments than a young investor?
- A person close to retirement may be more interested in the dividends because once they're retired they won't want to have long-term investments.
2. What other measures of a company’s “health” would you like to have before deciding to invest in the company?
- We would rather buy it in a "low" so we would make more money off of it, for example if we would want to sell we'd be selling it for more money than we bought it for.

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?
- Our purchase stretch from popular food brands to gaming systems to computer electronics. For instance, Cooper invests in Beverages-Soft Drinks. Cooper bought Coke a Cola Femsa and Dr. Pepper/ Snapple Group. Ana invests in Confectioners, she bought Hershey, Imperial Sugar Company, and Rocky Mountain Chocolate Factory.