Play Money - Research Paper Example

Play Money The process of investment requires careful thought and deep knowledge on stocks performance on a short-term and long term basis (Subramani, 2009). The investment decisions were made based on consistency and the amount of returns expected from the shares in the next two weeks. These companies have shown consistency in growth prior to my investment decisions. According to renowned stocky analysts, stocks belong to the Exxon, Bank of America, Pandora and Ford will gain in the year 2014.

The most important reasons behind these investments is the search of consistency, which minimizes the risks associated with falls in the price of shares. In the recent weeks, the shares belong to this company have been steady with drops ranging between 0.1-0.5%. These drops have not been affected by any company events in the past week. It is likely that the fall in stock shares is because many people are opting to hold the shares. Analysts have projected that some shares like those ones belonging to Bank of America are expected to hit an all-time in the year 2014.

Exxon Mobil shares record a growth of 0.6%, which means gains for my investment (Yahoo Finances, 2014). It is necessary to hold the shares to see if the prices would rise in the next few weeks. The following shows the table in terms of the losses and profits made in this period. This is based on the stock prices as of 5th May 2014 from Yahoo Finance.NameSymbolShare Price(April 17)SharesMarket value(Apr 17)Share Price(May 5)Market Value(May 5)Pandora Media Inc.p2580$200024.31$1944.80Exxon MobilXOM10020$2000102.01$2040.20Microsoft CorporationMSFT4050$200039.69$1984.50Bank of AmericaBAC16125$200015.25$1906.25Ford Motor Co.

F16125$200015.90$1987.50Total$10000$9863.25Loss$136.75 The investments have not performed well compared to the S&P 500 index. The index has shown a steady increase from 186 to 187 between April 17 and May 5. The index had a few fluctuations from 187 to 186 (Yahoo Finance, 2014). This has not been shown in the investments which have maintained prices and dropped during this period. The Dow Jones Industrial Average Index has shown a steady increase in the past one month with a few slumps. Exxon Mobil is ranked third among the biggest gainers and Microsoft appears among the biggest losers.

The S &P 500 index has been ranging between 188 and 189 based on stock price value. The prices have been relatively steady with minimal changes. For example in May 2nd the stocks indicated a 0.16% change in shares prices. The Russell 2000 index has, also, been steady in the long term (Russell Investment, 2014). It has shown a positive growth of 0.18% in the last month and 0.26% as of May 2nd 2014. Therefore, it seems that all these indices have been steady with very minimal fluctuations. The performance of the investments has been reflected in the tracking of these major stock indices.

This implies that investors might be cautious and holding shares. The fact that many analysts have predicted a rise in price shares in the near future, might explain the action by many investors to hold out. The fact that people are holding and not buying affects demand for shares.ReferencesCNNMoney (2014, May 2). Bank of America Corp. Retrieved May 5, 2014, from http://money.cnn.com/quote/forecast/forecast.html?symb=BACRussell Investment (2014). Russell Indexes data. Retrieved May 5, 2014, from https://www.russell.com/indexes/americas/indexes/daily-returns.

pageSubramani, R. V. (2009). Accounting for investments: Volume 1. Singapore: John Wiley & Sons (Asia.Yahoo Finance (2014). Retrieved from https://finance.yahoo.com