BUSI 223 Application Activity 4 Investing in Stocks Assignment solutions complete answers
Investing Fundamentals
Activity Description
In this activity, you will play the role of Steven. Jamie Lee and Ross recently had a $50,000 windfall. They plan to invest the money. After hearing great things about Vanguard, one of the world's largest investment firms, Jamie Lee and Ross have decided to give them a call, where Steven answers. Guide Jamie Lee and Ross in investing their windfall.
The estimated time to complete the activity is 15-20 minutes. You should start when you have enough time to critically think through the scenario. However, if you need to exit the activity before completion, you will return to where you left off when you re-enter.
Learning Objectives
After completing the activity, you will be able to:
· LO 1 Determine whether investing in an IPO is a good decision.
· LO 2 Suggest types of stock for Jamie Lee and Ross to invest in.
· LO 3 Recommend an investment plan for Jamie Lee and Ross.
Evaluation and Scoring
You will be asked to respond to a variety of questions as you complete the activity, and your responses may impact both your score and what happens next.
You will not have the ability to go back and change your answer, so consider each answer option carefully.
Scoring is calculated as follows:
1. Points are received based on the answer you select for each question, and questions are tied to multiple scoring categories associated with the learning objectives.
2. Your scores for each category are based on the total number of points you earn for the associated questions.
3. You will receive one final activity score at the end of the activity that combines your results from each category.
Your instructor has assigned a total point value for this assignment. Your assignment grade is calculated based on the final percentage score you earn at the end of the activity.
We have heard of a number of large IPOs recently and it seems like this is where the big money is. Is investing in an IPO a guaranteed way to multiply our money?
Why not?
Are there any upsides to doing it?
Do you think investing any of this money in an IPO is a good idea?
Match the different type of stocks with their characteristics.
What type of stocks would be useful for a 70 year old couple who is recently retired?
And how about a young investor just out of college with her first job?
What types of stock would you recommend we invest in?
What might Jamie Lee and Ross consider adding to their portfolio if they are concerned with a short term drop in the market?
Match the short-term trading techniques with their descriptions.
So how do day traders make money?
Match the long-term trading techniques with their descriptions.
What strategy would you recommend for us?
Why would you recommend buy-and-hold?
