Essay A Report On The Company Simulation

1082 Words Nov 27th, 2015 null Page
Background Prior to the Investopedia simulation I had very limited exposure to the stock market, only knowing of the existence of the TSX, NYSE, among other stock exchanges. Last year I started an Investopedia account and casually traded stocks without knowing any techniques or strategy, and managed my account which only had one or two stocks. I started it because I believed that Research in Motion, of whom was performing poorly on the stock exchange, would do better. I wanted to see if I was correct and what the return would have been. Past that I did very little trading. The only knowledge I had of stock terminology was what I learned in grade twelve accounting and what I self- taught myself on Investopedia. Some of these were short selling, bull/ bear markets, and basic strategies such as growth investing. I knew a little about the stock market and its purpose, but was certainly no professional at it. I understood the purpose was to buy small amounts of ownership in a company in the hopes that the value of the company would go up to create wealth for owners, which I still believe is the purpose of the stock market. For companies, it was to raise funds by issuing equity.
Strategy and Initial Purchases At the initiation of the Investopedia game, my team chose the growth at a reasonable price (GARP) stock strategy, which is a hybrid of growth and value investing. Our trades would also be based off of qualitative analysis when applicable as well. With this in…

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