A. software company that creates technology aimed at improving

A.  
I
selected Amazon stock because I believe it is a forward-thinking company.  Amazon has
grown from selling books online to an enormous infrastructure of warehouses full
of robots, immense computer systems, and wide-ranging delivery networks for
just about every product. Over
the last twenty years, Amazon has wisely invested in start-up companies that
adopted its technology early on.  Zappos, the successful
online shoe and clothing shop, is owned by Amazon.  Evi, the software company that creates
technology aimed at improving the consumer internet and mobile experience, in
particular the Echo, is also owned by Amazon.  The Amazon
Echo sits in our leaving rooms ready to conveniently take verbal requests for
more goods, from Amazon.  As well, with the
introduction of the shrewd and successful Amazon Prime program (no delivery
charges) Amazon Prime customers are buying over twice as many products as
regular customers.  This company has
shown a commitment to innovation, including developing a grocery store delivery
service and stores that might eliminate the need for cashiers; flying
warehouses; same-hour delivery by drones. 
The addition of a potential pharmacy could generate even more growth.  Another reason
that I bought Amazon stock is because it seemed like a safe investment.  The
company’s earnings have steadily grown.  It is a multi-national conglomerate.  The value of the company is almost a half-trillion
dollars.  The CEO of Amazon, Jeff Bezos,
is a strong and responsible CEO.  He has
high standards and attracts talented people with his vision, charisma, and
ability to deliver what he promises.  Amazon
has constantly had a very high customer satisfaction index.

 

 

 

Research references: 

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Cohan, Peter. “4 Reasons To Buy Amazon Before It Hits $2,000
In 2019.” Forbes Investing, 31 May 2017, www.forbes.com/sites/petercohan/2017/05/31/4-reasons-to-buy-amazon-before-it-hits-2000-in-2019/#76e50c124faa

Berr, Jonathan. “Amazon.com,
Inc. (AMZN) Stock: $1 Trillion Doesn’t Matter.” InvestorPlace, 11 April 2017, https://investorplace.com/2017/04/amazon-com-inc-amzn-stock-1-trillion-doesnt-matter/#.WiujzLaZPOR

 

B.   
Amazon.com,
Inc. (AMZN) is listed on NASDAQ.  The
resource I used for my stock ‘purchase’ and ‘sale’ reporting was nasdaq.com.  Amazon’s total revenue in 2016 (period ending 12/31/2016)
was 135.99 billion U.S. dollars and Amazon reported a net income of 2.37
billion U.S dollars.

 

C.   
The
closing price for Amazon on October 2 was $959.19 per share.  I bought 10 shares.  The total amount invested in Amazon was
$9591.90. 

  959.19

       x10

9591.90

 

D.  
Two
weeks later, on October 16, I sold my ten shares at the closing price of
$1006.34 per share for a total of $10,063.40. 
My profit per share was $47.15.  My
total profit was $471.50.

  
1006.34

          x10

10,063.40

 

E.   
The
highest closing price for Amazon during the holding period was 1006.34 per
share on the day I sold, October 16, 2017. 
The lowest closing price for Amazon during the holding period was 957.10
per share on October 3, 2017.  The 52-week
high was 1,213.41 per share.  The 52-week
low was 747.70 per share.

 

F.   
Amazon
does not pay a dividend to shareholders.  

 

APPLE

A.  
I
chose Apple stock because Apple is a progressive company.  Apple has
grown from a limited computer company to a mobile device leader.  Since the launch of the very first iPod in
2001, Apple shares have grown nearly 12,000%.  The value of the company is almost $800 billion, which makes it perhaps
the most valuable publicly traded company.  
The company produced $45.69 billion of net profit last year.  Apple has approximately $246 billion in cash
(more than the gross domestic product of most countries in the world.  With a lot of cash, Apple can use this to grow
its profit.  I believe Apple has hired
bright, innovative people – among them, Tim Cook, the current CEO.  In addition, Apple is a trusted brand with loyal
customers who keep coming back.  People
love Apple products so much that they are willing to pay a higher price.  Billionaire investor Warren Buffett first
invested in Apple last year, and since this time he has doubled his investment.
 Because I knew I was only investing for
two weeks, I felt the upcoming launch of Apple’s new iPhone X (released on
November 3) would be boost a buzz of anticipation.

 

Research references:

Divine, John. “Should You
Invest in Apple (AAPL) Stock?” U.S.
News & World Report Money, 19 June 2017, https://money.usnews.com/investing/articles/2017-06-14/should-you-invest-in-apple-aapl-stock

Vodicka, Michael. “Is Apple Stock a Good Buy?”
Nasdaq, 30 June 2017,

 www.nasdaq.com/article/is-apple-stock-a-good-buy-cm810745)

 

A.  
Apple
Inc. (AAPL) is listed on NASDAQ.  The
resource I used for my stock ‘purchase’ and ‘sale’ reporting was nasdaq.com.  Apple’s total revenue for the one-year period
ending 9/24/2016 was 215.64 billion U.S. dollars and Apple reported a net
income of 45.69 billion U.S dollars.

 

B.   
The
closing price for Apple on October 2 was $153.81 per share.  I bought 67 shares.  The total amount invested in Apple was
$10,305.27. 

     153.81

          x67

10,305.27

 

C.   
Two
weeks later, on October 16, I sold my 67 shares at the closing price of $159.88
per share for a total of $10,711.96.  My
profit per share was $6.07.  My total profit
was $406.69.

    
159.88

          x67

10,711.96

 

D.  
The
highest closing price for Apple during the holding period was 159.88 per share
on October 16, 2017.  The lowest closing
price for Apple during the holding period was 153.48 per share on October 4,
2017.  The 52 week high was 176.24 per
share.  The 52 week low was 110.60 per
share.

 

E.   
Apple
pays quarterly cash dividends.  In
January of this year, Apple paid 57 cents per share.  In May, August, and November the company paid
63 cents per share.

 

CATERPILLAR

A.  
I
chose Caterpillar stock because I believe it is an iconic brand and it is in a position
to grow.  Caterpillar
is the world’s leading manufacturer of construction and mining equipment.  This company is arguably the most
recognizable in the industry.  A
strengthening worldwide economy leads to building and construction, which in
turn leads to more construction equipment. 
As well, expected investments
in infrastructure activities in the U.S. and construction growth in China will
bring a demand for Caterpillar’s products and services.  Caterpillar
has also made wise management and business decisions to pursue global
customers.  The company positioned itself
to integrate and compete in foreign markets as a local company, rather than a
foreign company.  Caterpillar also has a long history of growth. According to Zack’s
Investment Research, Caterpillar has a Rank #1 (Strong Buy).  Additionally, UBS Financial Services upgraded its Caterpillar
rating from “Neutral” to “Buy.”  

 

Research references: 

“Brokerage Recommendations” 8 December
2017; Zacks.com website; https://www.zacks.com/stock/chart/CAT/broker-recommendations

“Here’s Why Caterpillar Inc. (CAT) Is A Strong
Buy Stock.” InvestorPlace, 24 May 2017, https://investorplace.com/2017/05/heres-why-caterpillar-cat-is-a-strong-buy-stock/#.WiyX1raZPOR

Kim, Tae. “Caterpillar Shares Hit a Record
after UBS Upgrades on a U.S. Construction Comeback ” cnbc.com, 18 September
2017, www.cnbc.com/2017/09/18/caterpillar-shares-hit-a-record-after-ubs-upgrades.html)

 

B.   
Caterpillar,
Inc. is listed on NASDAQ.  The resource I
used for my stock ‘purchase’ and ‘sale’ reporting was nasdaq.com.  Caterpillar total revenue for the one-year
period ending 12/31/2016 was 38.54 billion U.S. dollars and Caterpillar
reported a net income loss of -67 million U.S dollars.

 

C.   
The
closing price on October 2 was $124.72 per share.  I bought 81 shares.  The total amount invested in Caterpillar was
$10,102.32. 

    
124.72

          x81

10,102.32

 

D.  
Two
weeks later, on October 16, I sold my 81 shares at the closing price of $131.47
per share for a total of $10,649.07.  My profit
per share was $6.75.  My total profit was
$546.75.

    
131.47

          x81

10,649.07

 

E.   
The
highest closing price for Caterpillar during the holding period was 131.47 per
share on October 16, 2017.  The lowest
closing price for Caterpillar during the holding period was 124.72 per share on
October 2, 2017.  The 52 week high was 145.19
per share.  The 52 week low was 90.34 per
share.

 

F.   
Caterpillar
Inc.  pays quarterly cash dividends.  In January and April of this year,
Caterpillar paid 77 cents per share.  In
July and October, the company paid 78 cents per share.

 

INVESTMENTS:

Amazon:                         9591.90

Apple:                         10,305.27

Caterpillar:                   10,102.32

Total investment:         29,999.49 

 

RETURNS:

Amazon:                      10,063.40

Apple:                         10,711.96

Caterpillar:                   10,649.07

Total return:                 31,424.43

 

Total profit:                  1424.94

 

G.  
There
are many options to choose from when it comes to selecting the right brokerage
firm for me.  I chose to compare two large
investment broker companies:  Fidelity Investments
and TD Ameritrade. 

 

Fidelity
Investments is one of the largest brokerage companies in the country, offering a
wide range of services and benefits to investors.  The company charges $4.95 per trade, and they
require a $2,500 minimum account.  Fidelity has low commissions, but it appears
to have a more complicated fee structure that make it hard to decipher hidden
fees.  Fidelity has a clear and relatively easy-to-navigate
online trading platform.  Investors can
access their accounts and make trades with Fidelity’s website or mobile app.  For
traders who don’t want to risk making all of their own investment choices
without advice, Fidelity
offers in-depth assistance (articles, research reports, videos, infographics,
and webinars, etc.).  This can be an
information overload for beginners.  Though, active traders might find this extensive
database of research reports useful. 

 

TD Ameritrade charges more per trade –
$6.95, and there is no account minimum.  The pricing seems straightforward.  This is good for the small trader.  TD
Ameritrade seems to make up for high trading commissions with better service,
research and trading tools that are geared to the beginning investor.  Ultimately, knowledge is the most important advantage an investor can have.  Like
Fidelity, TD Ameritrade has a wide selection of educational
resources, user guides and webinars. 
The TD Ameritrade platform seems
simpler to navigate with easy-to-access learning resources.  One-on-one support is also something that I
will want.  (I prefer to be guided by a
professional, at least at first.)  Additionally,
TD Ameritrade has a promotional offer that allows
new customers to invest for free for the first two months, which seems
like a wise way to start.  In
Barron’s 2017 Online Broker Review,
TD Ameritrade was recognized as #1 for Long-Term Investing, Usability, and
Novices. 

 

In order to choose the right broker, I must
consider what kind of trader I am going to be. 
Will I move between stocks without holding them for a long time?  Or will I buy and hold stocks for the long
term?  A nice feature offered by TD
Ameritrade and not offered by Fidelity is “virtual trading.”  This is a process of simulated trading where
beginner traders can practice investing without using real money.  Trading strategies can be tested without
risk.  With practice, perhaps I will
learn what kind of trader I am, or will be. For these reasons, I believe TD
Ameritrade seems like the best brokerage for me.  Maybe Fidelity Investments would suit me in
the future as I become more confident.