Assignment 2.04:What is Stock Anyway?
Economics Honors
Trevor Barrow
Ms Seed
I chose to use Microsoft as my choice for an aggressive investment.
Microsoft Corporation was founded by Bill Gates and Paul Allen in 1975?
Microsoft trades on the Nasdaq exchange with the sticker MSFT.
Contact info: 800 285-7772.
One Microsoft Way
Redmond WA 98052-6399
To purchase Microsoft stock you would contact American Stock Transfer at www.amstock.com. The links take you directly to an application and directions for how to purchase Microsoft stock depending on whether it is your initial investment or your are already enrolled. Minimum investment initially is $250 and the maximum for those already enrolled is $10,000 per day.
The risk for any sole stock is high and there is no guarantee of FDIC promise that your money will exist in the future. If the stock crashes, you either wait till it goes up again or take what remains.
I chose Microsoft because it is a solid company. It was established in 1975 and went public in August of 1989.
The risk for any sole stock is high and there is no guarantee of FDIC promise that your money will exist in the future. If the stock crashes, you either wait till it goes up again or take what remains.
I chose Microsoft because it is a solid company. It was established in 1975 and went public in August of 1989.
Microsoft stock has split 9 times since 1986. An initial investor would see a return of an almost unfathomable 20,000 % on his initial investment. Understandable why Bill Gates is the world's richest man.
The company is now multinational and has invested in Facebook as well as companies such as?
Fidelity Investments-Mutual Fund: Fidelity Blue Chip Growth Fund-Moderate Risk
Contact info: 800-343-3548 for all investment related information. Fidelity is an extremely diversified financial service and one of the most well known in the world.
They offer products for individuals, institutions, retirement and employers. The goal of the company is to help all customers reach their financial goals.They are also one of the largest mutual fund companies available.
For my moderate risk investment I researched Fidelity's Blue Chip Growth Fund which trades as FBGRX. this mutual fund was conceived in 1987 and has a moderate to moderately high risk for investors. It invests in what it calls "blue chip" companies, those which are large and well known. Some of the top 25% investments in the fund are Google, Microsoft, Home Depot, Apple. Gilead, Visa, Mastercard, Amazon, Facebook and Qualcom. These are all solid earning companies and a hefty percent are in Information Technology.
A minimum initial deposit of $2500 is required for purchase of Fidelity Blue Chip Growth stock. Usually corporate or retirement accounts have different rules. FBGRX has a beta index slightly higher than the S&P 500 which means it is slightly more risky than that index which is the standard of comparison. The expected rate of return will of course vary and recently has because of the down economy. The historical rate of return has been very good. The chart below shows the growth of the fund over the last 10 years. The stock has returned a phenomenal 38.99% in the past year,16.90% in the past 3 years and 27.42% in the past five years. They have obviously made some very wise investment choice even though the economy has been ragged.
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Chart showing hypothetical growth of $10,000 invested in Fidelity Blue Chip fund
(By clicking on the chart above the option to make it bigger appears.)
Ally Bank-Conservative Investment: one year Certificate of Deposit Ally bank is an on-line banking service which offers individuals checking accounts, financing products, savings accounts, IRAs, Certificates of Deposit and several other relatively conservative banking and investment options. Ally is 100% on-line and can be contacted at www.ally.com or 1-877-247-ALLY. Ally has administrative offices in Philadelphia, Pennsylvania. I chose to research the Ally 1 year Certificate of Deposit because this bank has offered the best interest rates for conservative investments in the last 5 or 6 years. Currently they offer a one year CD for 0.99%. This is several tenths better than what most banks offer. They even offer a change your rate CD which gives you a specific amount of time to change your chose CD rate to a higher rate should the rate change within the first 10 days of your purchase of the product. No minimum investment is required to purchase a certificate of deposit. Sometimes banks will offer better rates for jumbo CDs which usually start at an investment minimum of $100,000 but I do not see such an offer at this time. This is how Ally currently compares to some other banks for 1, 2 and 5 year Certifiicates of Deposit:
Search Summary
1 yr CD
If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
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Although a few banks do offer slightly higher interest rates for the Certificates of Deposit than Ally does, they also require a minimum of at least $500-$25,000. So overall if you are looking for a product to tuck your money into which requires little effort, Ally has the best deal for very conservative investments.The risk level for this investment is very low as it is insured through the FDIC for up to $250,000 per individual account. This is the perfect place for someone with limited experience with money to invest over a relatively short period of time and watch how the interest accumulates.
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