case#255771679-Finance.docx

case#255771679-Finance.docx - Surname 1 Name Date Finance...

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Surname 1 Name Date Finance Stock Investment Introduction Coming from the family of stock traders and avid investors, the world of Wall Street has always attracted me. While I am completely aware of the stock trading activity, however, personally, I never had any experience of investing in the stock market and had no idea about the practical application of diversification process. This project was indeed a wonderful opportunity for me to obtain a hands-on approach on stock investment and experience how diversification comes to aid for every investor. Following the instructions, I invested a different sum of money in five different stocks, all of which were listed in NYSE. Below we have explained the rational for selecting each stock, past performance and their concluding performance. -Apple Inc: The past one year had surely been a dream run for Apple investors as since last May, when the stock dipped below $90, the stock has surged to all time high of $154. (Thomas, Landon)Therefore, the stock has yielded nearly 100% return in one year. Moreover, I had no apprehension about the fundamental basis behind miraculous increase in the stock price of the company as blockbuster success of IPhone 7 and warm reception of new Macbook Pro and IPad have added another thick pile of profit in the company’s account. Lastly, after a recently
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Surname 2 concluded WWDC event by Apple, where the company revealed new products in the pipeline such as Home Pod, IPhone 8 and IMac Pro, I was expecting that the market will perceive such optimistic events on a positive note and the stock price will continue to rise. Even though my trading session was obvious to be short-term, however, I was optimistic of making a decent level of profit in short as well as long-term. Therefore, considering all the factors, I decided to purchase 2 shares of Apple at an average price of $154. -Eventual Performance Unlike our expectations, by the end of the trading period, Apple stock plummeted by nearly 5.83%, decreasing from our average purchase price of $154 to $145.32. Consequently, with a holding of 2 stocks, I lost $18.14. The stock decreased because of two reasons: high selling because of profit booking and high stock valuation concerns. (Cheng, Evelyn) During the
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