THE INTERNET INVESTMENT PROJECT

SPRING 99

BEGIN FEB 18END APRIL 23

BE 212 by Prof. Mo Hassan

PURPOSE:

Provide you with an understanding and feel of the U.S. stock market.

Enhance your spreadsheet experience.

To use the www for business research.

To develop a sense for investment and value of money.

THE PROJECT:

You have $50,000 to invest in at least four corporate stocks in the NYSE, AMEX, or NASDAQ.

You have $10,000 to invest in at least one STOCK mutual fund and one BOND fund.

Report on each stock purchased should include 1) summary of the company, 2) Reasons for picking the stock (must be sound and educated reasons supported by research). 3) Past one-year performance review. 4) Industry overview. All summaries should be 1-2 pages.

Copies of the above information. (All from the www).

You may use the class web page to access info. then go to Bus World or BE 212. You may use Yahoo.com, CBS.com, Lycos.com etc. It’s your choice!

Updated articles for each of the investments every week. (All from www).

The www must be used to complete the project. You may use Excel as a supplement.

The Spreadsheet must contain the following for each investment 1) Name of Co and stock symbol. 2) # of shares purchased. 3) Total amount of Investment. 4) Purchase price 5) Date of purchase. 6) Stock Exchange.

Change in price, Loss/Gain on Investment, and current value should be reported and updated on weekly basis (every Thursday). One page per Investment.

(Portfolio Summary) Portfolio Loss/Gain and Total Value should be reported every week (Thursdays).

You will have 10 trades that you may use following the initial purchase. A flat $10 commission will be charged. You are required to use at least five trades during the portfolio period. A penalty of $200/trade and one point will be assessed to each unused trade. Max penalty (5x200=$1000 and 5pts). Penalty is assessed only on the unused requirement.

5 points bonus for the best performing portfolio (with the highest % return and score). Optional: (Gift Certificates Vote $25 (depending on class size). Then each student must contribute $2-$3 to enter. Highest % return portfolio will win the jackpot.

You may use graphs etc. Optional. It’s a good way to having an impressive portfolio!

One word of advice: diversify your portfolio. Do not put all your eggs in one basket. Thus, select companies that are in different industries. Example Coke and Intel? Also look for aggressive stocks that might make a big move during the time of your project. After all, that should be your main and only concern for now.

BEGIN PERPERATION AS EARLY AS YOU CAN!!

Contact me if you have any questions, or need further assistance.

Good Luck!

Project will begin and on the mentioned dates. Late or incomplete portfolios will be penalized 5pts a day. So plan ahead…