Question
Most people overlook the fact that stocks are all around us. Stocks are around us when we visit stores (whether in-person or online), go out
Most people overlook the fact that stocks are all around us. Stocks are around us when we visit stores (whether in-person or online), go out to eat or have food delivered, make a purchase (whether big or small), go on vacation, etc. I believe that you are getting the point that I am trying to make. To help you with brainstorming, please find below (8) eight categories to consider.
Stores or establishments you visit (e.g., restaurants, grocery stores, clothing stores, or other types of retail stores whether in-person or online)
Products You Buy (e.g., lotion, shampoo, laundry detergent brands, bar soap brands, toothpaste)
Big Ticket Items (e.g., vehicles, washer/dryer, home builders)
Leisure/Recreation (e.g., cruise lines, airlines, amusement parks)
Technology (e.g., software, computers, televisions)
Finance (e.g., banks, credit card companies)
Health Care (e.g., pharmacies, insurance)
Industrial/Energy (e.g., energy, construction)
If you think of additional categories, please feel free to add the categories. The important thing is that you start paying attention to investing opportunities all around you. Dont be afraid to look at the back or bottom of products you use to determine the name of the companies that make and distribute the products. Or when all else fails, you can Google to find out the name of a company. When brainstorming, complete the following:
List 15 potential stocks that may be placed in one of the (8) categories given above or additional categories.
Use Yahoo Finance or Google Finance to determine the following for each stock:
Closing Stock Price/Share Price of your 15 potential stocks as of Thursday, January 12th, 2023, at 4:00 PM EST.
The number of outstanding shares for each potential stock as of Thursday, January 12th, 2023, at 4:00 PM EST.
Determine the beta given for each potential stock that you identified
You may use Yahoo Finance to find the reported beta for each stock given under the "Summary" tab. Also, you may refer to the January 9th Announcement titled "Useful Resources for Week 2 and the Project Part 1 Assignment" to view a short video (4:53) that explains what beta is.
Determine the market capitalization for your 15 potential stocks
Use the following formula to determine the Market Capitalization for each stock:
Stock Price x The Total Number of Outstanding Shares for a Stock = Market Capitalization
Based on the market capitalization that you calculate or find for each stock, identify which stocks are large cap (with at least $10 Billion in Market Capitalization)
From your 15 potential stocks, list the top (5) five large cap stocks that you may consider for your portfolio.
Briefly describe your rationale for considering and possibly adding the five large cap stocks to your portfolio.
You are not obligated to select or include the five possible stocks as part of your Project Part 1 submission.
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