1.) Why did Milton think his chocolate candy would sell?
A.) Milk chocolate was affordable to the average american, and milk chocolate had a longer shelf-life then caramel.

2.) Where did he get the money to start making chocolate?
A.) He sold his Lancaster Caramel Company for 1 million dollars, and with that money he bought technology to make milk chocolate.

3.) What type of company did Hershey have before he incorporated?
A.) His company was a proprietorship style.

4.) What benefits do you think Milton gained from forming a corporation?
A.) Milton received more revenue, more products to make, and became well known.

5.) Why would people today want to invest in the Hershey Company
A.)They would want to invest because Hershey is a well know association who's makes billions everyday with their famous products, amusement park, and other novelties

John Deere
Hot Topic
Barnes and Nobles
Toys R Us
American Eagle
Pet Smart

Week 2 Questions-
1: Is Revlon doing better or worse than the previous trading day? How do you know?
A: All of the previous trading days are even until now. Nothing is ranked higher or lower.
2: Is Rite Aid nearer to its yearly high or low? Would this be a good time to purchase the stock? Explain.
A: Rite Aid is near to its' yearly low. It would not be a good time to purchase the stock because they are decreasind in sales.
3: What are the stock ticker symbols for Revlon and Rite Aid? Are you surprised? Explain.
A: Revlon➸REV
Rite Aid➸RAD
No Surprise at the Ticker Symbol because they are almost like abbreviations for the store name.
4: Did either Revlon or Rite Aid pay a dividend?
A: Rite Aid does pay a dividend. In February of 2010 it paid out approximately 1.9 M in dividends.
Revlon did not appear to pay a dividend. I could not find information showing a dividend that was paid.
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.
A: It explains how the company's doing & where the prices are at.
6: Would the same information be the most important information for people who already own stock in these companies? Explain.
A: No, because they already know how the company is doing & where the prices are at because they own the company.
7: What would you guess was the market trend on this particular day? Explain what information led you to this conclusion?

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Conservative, Moderate or Speculative

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
A: It's a conservative investment because the buyer has not taken too much stock to be risky, but hasn't taken so little to be viewed as speculative.

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.
A: You are taking a speculative risk because you know nothing about the company, but you believe their idea is a good one.

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.
A: You are taking a moderate investment because the car could keep rising because of the popularity, or sharply fall after people realize it doesn't live to its hype.

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.
A: It's a moderate investment. It's a moderate investment because the company has really risen in a year, and at that pace, it could keep going.


Compound Interest: Compound Interest is calculated on both the principle and the accrued interest.

Effects: If you put in $1,000 in the bank and draw : Ex. 5% interest at the end of the year it will grow to $1,050. If you leave it in for another year, you will end up with $1,103.

Investing in U.S. Saving bonds. U.S. Savings bonds have been available for purchase since 1776 when private citizens purchased over $27 million in government bonds to help finance the Revolution. People buying the bonds during the time were really buying at risk because they weren't sure they would get the bonds repaid.


Saving- tending to serve to save; rescuing; preserving.

Investing- to put (money) to use, by purchasing or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.

Compound Interests- interest paid on both the principal and on accrued interest.

Diversification- the act or process of diversifying; state of being diversified

Rule of 72- Methods for estimating an investment's doubling time. You divide the number in the title by the percentage per period to obtain the approx. number of periods required for doubling.

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

Amount Invested
Interest Rate
Three Year Total Value
Years to Double (Rule of 72)
$1093 24 $1000
$1158 14.4 $1000
$1260 9 $1000
$1330 7.2
WEEK 5- Dividends and Earnings Q: Go to Yahoo Financial site identify a company that paid a dividend. Discuss why dividend stocks are attractive to some investors.A: Dividend stocks are yet so attractive to some investors because investors want to invest in their money. A company that pays a dividend is Verizon (VZ). John Deere (DE) also pays a dividend. The last example is Caterpillar (CAT) pays a dividend. An investor would be attracted by dividend shares because they earn a small earning on top of their profit, so they earn a surplus of money. 1. Why might someone close to retirement be more interested in the dividends paid by investments than a young investor?When you are retired you get a pension but don't make money other than that, and because a dividend gets them more money that is what they prefer. A young investor probably has a job where they could earn extra money so they would not need the extra money. 2. What other measures of a company’s “health” would you like to have before deciding to invest in the company?In my opinion making sure that they have a good trend in how much they have won or lost is a good measure for a companies "health" before investing in a company.

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?Answer:Yes, they cover a broad range of industries. Drinks and Beverages, Resturants, electronics stores, music and video stores, construction, and healthcare.

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.
Answer:1) TEDIX-Mutual Global Discovery Association2) PENNX- Royce Pennsylvania Mutual Investment3) RMFCX- American Funds American Mutual R3