Microeconomic Stock Investment Project - Essay Example

Essay Macro & Micro economics Microeconomic Stock Investment Project Stock Investment Introduction This study involves analysis of the performance of various stocks in the market and their impacts on the development of portfolio. Using the fake stock game, the selected stock portfolio contains the most influential stocks on the growth and development of the portfolio.1. 2 to 3 stocks that was impacted my performance The most influential stocks that majorly influenced the performance of the portfolio in this business are shown in the table 1 and figure 1 below:Stock NameTypeSharesExec Price ($)OXBITSell232635.

54CVMSell52951.33JCPBuy20007.94GPRNBuy5985.63Table 1: Selected StockFigure 1: Selected Stock Portfolio – Shares traded2. Details about the StocksAs for the Oxbit stock, the number of shares sold was 23263, each at US$ 5.54. Of course, this is the highest sold stock in this portfolio. The next performing stock was that of CVM. The number of shares sold in CVM was 5295, each at US$ 1.33. For JCP, the major transaction for the stock was buying. The number of shares bought were 2000, each at US$ 7.94. Lastly, in the portfolio, GPRN bought 598 shares each at US$ 5.63. The share prices appear in the figure 2 below.

Figure 2: Share Prices3. Investment StrategyThe investment strategy is to identify the trends and the variation of share process and the number of shares traded in order to decide whether to buy a particular stock or to sell. When the stock prices reduce and move towards the minimum threshold, the business decision is to buy more of the tock. On the other hand, if the stock price grows towards the maximum, the decision is to sell as many of the stock as possible. From the fake stock game, the stocks identified for sale were CVM at US$ 1.

19 and CERE at US $ 1.05. The stock identified for sale was C at 47.74 and EBAY at US$. 53.96.4. Stock Portfolio PerformanceThe stock portfolio analysis was done using the two major parameters total equity and the return on investment. The results for different dates are displayed in table 2 and figure 2 below:DateTotal equity ($)Return (%)4.4.1495894.56-4.113.3.1489592.67-10.412.28.1492116.88-7.882.27.1497338.412.66Table 2: Portfolio InvestmentFigure 3: Total Equity AnalysisFigure 4: Return on InvestnmentThe stock only shows the periods affected by the selected stock influencing the performance of this portfolio.5. Impact of Economic Conditions on Stock Portfolio The prevailing business is influenced by inevitable economic conditions such as the fluctuation of stock prices.

This makes it difficult to set optimal prices at which the decisions can be made to either sell or buy the stocks (Hubbard 77). Secondly, the business is affected by liquidity challenges. The buying power of the business is low as exhibited by the low purchases of high value stock and investment on short-term basis.6. ConclusionThe business is headed for greater portfolio size in the future since the number of selling and buying transactions is dynamic. The strength of the portfolio is focused on diversification, innovation and intelligent study of the contemporary stock market.

Indeed, the analysis was relevant as a tool for predicting the future dynamics of this portfolio and investment.Works CitedHubbard, Douglas (2007). How to Measure Anything: Finding the Value of Intangibles in Business. Hoboken, NJ: John Wiley & Sons.