Let's imagine that your Learning Coach began planning for your future on the day you were born. Choose one of the companies below in which you would like to own 200 shares.
The Coca-Cola® Company
IBM® Corporation
McDonald's® Corporation
Nike® Inc.
Wal-Mart® Stores, Inc.
The Walt Disney® Company
Part I: Research
Research the stock price of your chosen company on the day you were born by selecting the appropriate website. (Note: If your date of birth fell on a weekend or holiday, the website will direct you to the closest business day)
The Coca-Cola Company
IBM Corporation
McDonald's Corporation
Nike Inc.
Wal-Mart Stores, Inc.
The Walt Disney Company
At the same website, research the stock price of your chosen company on your 10th birthday. (Note: If your 10th birthday fell on a weekend or holiday, the website will direct you to the closest business day.)
Visit www.nyse.com and search for today's closing price (or the closest business day).
Provide the following data to your instructor:
the company you chose
your date of birth
the closing price of the stock on the day you were born (or the closest business day)
the date of your 10th birthday
the closing price of the stock on your 10th birthday (or the closest business day)
today's date
the closing price of the stock today (or the closest business day)
Part II: Calculations
For each of the following questions, imagine your Learning Coach purchased 200 shares of stock in the company you chose.
What would the purchase price of the 200 shares have been on the date of your birth? Show your work.
Imagine your Learning Coach sold all 200 shares of the stock on your 10th birthday. What would the return on their investment be? Show your work.
If your Learning Coach had sold all of the stock today instead of your 10th birthday, what is the difference between the return on their investment? Show your work.
Part III: Analysis
Using the information found in your research and calculations, answer the following questions in complete sentences.
Would it better to sell the stock on your 10th birthday or today? Why?
Ideally, would you try to convince your Learning Coach to sell the stock on your 10th birthday, today or keep it longer? When developing your response, consider the trend for the stock throughout your lifespan and what could potentially happen in the days, weeks, months, and years ahead.
Would you advise others to invest in this company? Why or why not? Answer the following questions to help guide your response.
Do you believe investor confidence is high or low in the company? Why?
Do you believe there is a high or low demand for the company's product? Why?
How would the state of the economy today affect someone purchasing this company's product?