Free Essays on Stocks to Get Inspired & Learn by Example

The Wall Street Journal published an article titled “Stock Valuations Go under the Lens” on 28th September 2014. The article talks about the troubles experienced by stocks during valuation. One of the issues troubling stocks during that period was the pricing of stocks towards perfection. Pricing stocks towards perfection means that the prices of stocks are priced at a very high level such that the gains are dependent on the favorability of the investing environment (Browning, 2014). The investing environment should have low interest rates, continuous global growth, low inflation, and strong corporate profits. A less favorable environment weakens Continue reading...

Introduction

In this report, we will illustrate the portfolio construction process where each stock or asset will be selected considering the client’s risk-return objective. Since, the client is risk-averse; we will not expose the portfolios to high risk, and will try to construct the portfolio composition with the core fundamentals of the portfolio management, i.e. a highly diversified portfolio where weights of each portfolio will be selected on the basis of maximum return-minimum risk profile.

Section 1

a)Five companies to be considered while optimizing the portfolio are Apple Inc., Starbucks Coffee, Caterpillar Inc., Nike Inc. and General Motors. While selecting Continue reading...

How to beat the stock market? Or can we actually do that?

Just like any other investor in the market, even my trades were guided by the psychology of ‘’Want to be Warren Buffet’’. However, by the end of my trades, again like any other investor in the market I found that, ‘’There is only one Warren Buffet’’, as eventually I ended up on no-profit-no-loss situation. Although I trade in high-notch stocks such as Amazon, Microsoft, General Electric, and even the big-shot-ever-lucrative, Apple’ stock, but all I could manage is the break even. So, now I need to find, how to beat the markets? Or is it possible to beat the Continue reading...

Inventory Management

One of the most important fields of activities management of enterprises of various sectors is inventory management which relates to the production of goods and service delivery. In conditions of market economy the issues of rational and efficient organization of processes and control the movement of material and financial flows in the company became particularly relevant since their solutions tend to increase the logistics efficiency on the enterprise as well as the sales of manufactured products. It is necessary to optimize the inventory levels and their effective use together with minimize the working capital invested in these reserves and Continue reading...

Value Investing

Introduction:
In the business world knowing the essentials of investment shall lead to sure success. Evidently, the way the world’s economy has been changing was into a platform that would encourage even the common people to invest. The world’s economy has grown much bigger in the 20th century and more accessible than ever with the existence of the worldwide web. But seemingly targeting the market without prior knowledge would be going into a battle without ammunitions. And to have a better approach in value investing most especially in stocks, the three lessons discussed in this paper will Continue reading...

Can we beat the stock market?

Can an individual investor beat the market?
Before providing an answer to the above question, let us discuss basic financial theory that has ruled the financial community over decades now, Efficient Market Hypothesis (EMH). EMH is indisputably a widely recognized financial theory that states that stock markets are efficient and all the stocks are fairly valued, thus making it impossible for the investors to purchase undervalued stock or sell overvalued stocks. Accordingly, no investor can outperform the market through expert stock selection. Ironically, while many financial pundits believe that markets are efficient and EMH do hold, we have investors Continue reading...

Section 1: Five companies’ stocks selection

Rationale for the five stocks selection and analysis key information about each company’s background
BP p.l.c.
BP P.l.c. operate an integrated gas and oil company. It has three segments of operation: Upstream, Downstream, and Rosneft. The segment of Upstream engages in the exploration of oil and natural gas, development of the field, and production; transportation of midstream, and processing and storage; and trade and marketing of natural gas. The segment of Downstream manufacturers, refines, markets, supplies, transports and trades in petroleum, crude oil and petrochemicals products and services that are related to retail and wholesale customers. The segment Continue reading...

Executive Summary

This paper investigates the efficient market hypothesis in extreme depth. It provides a comprehensive overview of the renowned literature on this particular subject. Comparison to real market problems as well as the limitation of this model is discussed. Moreover primary empirical research is also conducted during this study.

Introduction and Intended outcomes

The efficient market hypothesis is related with the performance of values in asset markets. The expression ‘efficient market’ was originally related to the stock market, but the notion was rapidly simplified to further asset markets. A while before, the efficient market hypothesis were quiet popular amongst the scholastic financial economists. This Continue reading...

Introduction

This report describes the analysis of two stocks using the single index model. It describes the sources of data, methods of analysis (Single Index Model and regression analysis) and explanation of findings. The final results are useful for decision-making in the financial strategy.

The table above contains the information about two analyzed stocks. First stock is from ASIC short sales list, it places fifth position in the list of the highest number of reported short positions. This stock is the stock of Myer Holding Limited that provides different customer services. The second stock is NAB.AX, because the second last Continue reading...

Fidelity Large Cap Stock (FLCSX Fund)

Fidelity Large Cap Stock (FLCSX fund) is a mutual fund managed by Fidelity Investment. It targets investors who are keen on long-term growth of their capital. At least 80% of the fund portfolio is invested in common stocks of companies with large market capitalizations such as those or similar to companies in the Russell 1000® Index or the S&P 500® Index. The stocks coming from either domestic or foreign issuers are selected based on their prospects for "growth" or "value", or both. Fund managers use fundamental analysis of each holding’s financial condition, market/industry position, overall business and economic Continue reading...