Buying And Trading Shares

On the website How The Market Works we received $10,000 to purchase stocks. The objective being that we would learn how to purchase, and trade stocks for investments. I obtained new information of the concept of purchasing and trading stocks, and over economics in general. The method that I used for purchasing my stocks was that , I only purchased major brands that would have long term profit, and that I knew wouldn’t lose value. The stocks that I purchased were SBUX(Starbucks),JNJ( Johnson & Johnson),MCD (Mcdonalds), DLS (TheWalt Disney), HD (Home Depot Inc), and NKE(Nike).

The first stock that I purchased was SBUX. I purchased 22 shares of Starbucks retailing at $58.20 each, with a market value of $1,440. Starbucks, is a major franchise that has been running for nearly a decade now. I decided to pick Starbucks over any other coffee company, because Starbucks is the number one coffee house chain worldwide based on revenue, and number of stores worldwide .

The highest profit gain I received was a 12.48% profit gain, that being from Starbucks. The next stock that I purchased was from Johnson & Johnson.

I bought 10 shares of Johnson & Johnson at $138.86 each coming up to $1,454. I also purchased 7 shares of Mcdonald’s, at $176.50 each with a market value of $1,292. I picked Mcdonalds because of how large, and successful the franchise is. Another stock that I purchased was The Walt Disney Company. I purchased 9 shares at $112.69. Walt Disney values itself in being the “world’s leading producers and provider of entertainment and information.

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” So that is why I decided to purchase it. Last but not least I purchased a total of 15 shares of Nike at $72.57 each, to come up to a total of $1,087. I picked Nike as one of my stocks because of its worldwide recognition in athletic apparel. Nike is a major corporation recognized for their high quality in apparel , shoes , and anything related to fitness. I would have chosen my stocks differently if I would have known that stocks change so quickly. Stocks lose and increase value relatively quickly, if I would of known so beforehand I would have traded and bought stocks more often.

Another con to purchasing stocks is that nothing is guaranteed, you risk everything when you purchase a stock. Purchasing stocks and bonds are not the only way to save for retirement. There are many methods of saving for retirement such as a starting early, creating a budget, having a savings account, or social security. In order to be prepared for retirement starting as soon as possible is important. The earlier you begin, the more time you have. A method of saving for retirement would be opening up a savings account. Another method would be creating a budget. By creating a budget, you have a limit as to how much money is exactly being spent, which is important when you want to save up as much as possible. Opening up a savings account is vital for retirement. In savings account, you can place all of the excess money you made in one account. The last method and probably best method of retirement would be the social security administration.

The social security administration is a government owned association that takes a portion of your check in order to save for retirement. Social security is the most beneficial way to save for retirement, because the government automatically cuts it out of your check.. After completing the stock market game I have learned that purchasing stocks, and making trades is a good way to make money. I also learned to invest in companies that will have long term success. Overall How The Market Works is an excellent way to teach students about stocks, trades. The website even includes practice accounts, or an alternative method for complete classes. I gained new knowledge from the website, and would recommend for its use to be continued in the future.