1. Why did Milton think his chocolate candy would sell?
2. Where did he get the money to start making chocolate?
3. What type of company did Hershey have before he incorporated?
4. What benefits do you think Milton gained from forming a corporation?
5. Why would people today want to invest in the Hershey Company?

1. He thought it would sell because it was milk chocolate at an affordable price.
2. The money came from his mother's family.
3. He owned the Lancaster Caramel Company.
4. He earned a lot of money and sold stock to the public. His simple milk chocolates formed into many new products and his corporation continues to grow.
5. People invest in the Hershey Company because of its success. The name Hershey is widely known and the sweet treat is cheap and affordable. Because of its popularity, the stock should be good.



  1. Is Revlon doing better or worse than the previous trading day? 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 information shown on this web site 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 market trend on this particular day? Explain what information led you to this conclusion.
1. Revlon did worse today. We can tell by looking at the graphed data.
2. It's trading near its low. Yes, because you should buy a stock when it's at its low so that when it goes up, you can sell.
3. REV and RAD. No, because the ticker symbols are basically abbriviated versions of the words.
4. It was marked as N/A for both stocks.
5. Every aspect of a stock is important. you should check the stats of the stock and make sure that its good.
6. Yes, you have to evaluate whether you want to keep or sell.
7. Overall the market was down slightly. We looked at the DOW, Nasdaq, and S&P 500. the Dow and S&P 500 were both slightly down, while the Nasdaq was up fractionaly.


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.

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.

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 1: It is a liquidity risk because its a product thats easily sold, and a captial risk because it goes up and down based on the market.

Investment 2: It's a capital risk because you have the chance of losing all your money. You don't know anything about the company, it could go either way.

Investment 3: A liquidity risk because it has increased very quickly in a short period of time.

Investment 4: Capital and liquidity because your money could go down, it's a product that sells very easily.


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


Calculating Dividends

Situation One

Investor 1: $300
Investor 2. $450
Investor 3: $1500
Investor 4: $1875

Situation Two

Investor 1: $1500
Investor 2: $2250

Situation Three:
They can spend it on thing that they can use to maintain their company. They can endorse their product/company.

Situation Four:

$80

Situation Five:

Situation Six: