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INSTRUCTIONS You have formed an investment club and solicited your friends to join. The club sold 500 shares at $10 each to members to raise

INSTRUCTIONS

You have formed an investment club and solicited your friends to join. The club sold 500 shares at $10 each to members to raise money for you to invest. The total amount of money the investment club has to invest is $5,000 (500 shares x $10). Below there are six different stocks available for you to invest in. You must invest the entire $5,000 in a minimum of 4 different stocks. You may invest in as little 4 stocks or spread the money over all 6 stocks. You will fill out the chart below showing your investment decisions.

Stock Options

American Cellular, $7 per share

This is a new cellular company that features high-tech services such as phones that send streaming video. So far, the company has not made a profit but expects to do very well soon.

Big Box Stores, $25 per share

Big Box Stores is one of the leading discount retailers in the country. Same-store sales have increased steadily in each of the last five years.

Biotech Industries, $12 per share

Biotech Industries is a pharmaceutical company that specializes in developing cutting-edge drugs. It has some profitable products, but so far its profits are small.

General Grocery, $22 per share

This is a leading grocery store chain. Sales are generally steady and do not change much with the economys ups and downs. However, some experts predict that the growing trend toward eating out in restaurants will hurt future sales.

Giant Auto, $12 per share

Giant Auto is one of the three leading automobile manufacturers in the world. The companys profits depend on economic conditions. Profits are high in times of strong economic growth and poor in bad times or recessions.

Gold Mining Group, $5 per share

GMG is a gold-mining company. The price of gold often rises in bad times or recessions and falls in good times.

Company

Price Per Share

No. of Shares Purchased

Amount Invested

American Cellular

Big Box Stores

Biotech Industries

General Grocery

Giant Auto

Gold Mining Group

Total Investment Value (Add last column. Must equal $5,000)

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