4. Suppose Jamie Lee and Ross are evaluating corporate stocks to add to their investment portfolio.

Using Your Personal Financial Plan sheet 38, select a company from your own personal experiences, such as an automobile or technology company, and research the information needed to complete the worksheet.

a. Based on your research, should Jamie Lee and Ross invest in this company? Provide support for your evaluation based on the information you reported in Your Personal Financial Plan sheet 38.

b. If they should invest in the company you suggested, how much of their $50,000 inheritance should they allocate toward the purchase of shares in the company?

c. Regardless of your position on whether they should invest in your chosen company, if Jamie Lee and Ross went ahead and purchased shares of stock in that company, how many shares could they purchase with the $50,000?

d. What would be the total transaction cost if they purchased the shares online? (List the source for your answer.)

The triplets are now entering high school, and Jamie Lee and Ross are comfortable with their financial and investment strategies. They budgeted throughout the years and are on track to reach their longterm investment goals of paying the triplets’ college tuition and accumulating enough to purchase a beach house to enjoy when Jamie and Ross retire.
Recently, Ross inherited $50,000 from his uncle’s estate. Ross would like to invest in stocks to supplement their retirement income goals.
Jamie Lee and Ross have been watching a technology company that has an upcoming initial public offering and several other stocks for well-established companies, but they are unsure which stocks to invest in and are also wondering if their choices will fit their moderate risk investment strategies. They want to make the best decisions they can to maximize their investment returns.