Stock Market Assignment - Essay Example

Restaurants’ Stocks investment IntroductionThe process of investing in stocks is a challenging task. Before one decides on which stocks they can invest in there are a number of factors one should consider. First one should decide which industry is profitable. For instance, if the real estate business is the one booming then it would be advisable for one to invest in real estate stocks. However, time is a crucial factor in stock exchange the value of a stock in a minute time will be different in the next couple of minutes.

This can be evidenced by the rate at which flowers are sold during Valentine day as compared to the ordinary days. Another important factor to consider is the overall performance of the corporation. Briston, (2012), argued that small companies tend to have increasing stock prices as compared to grown business. Therefore, investing in a small growing company will have a good return as compared to investing in a multinational corporation. Restaurants’ stocks Investing in hotel industry is safer because, there is no point in time when one will not eat.

My first shares will be from cheese factory cake restaurant. I purchased sixty shares which were retailing at USD 49.26 (“Stock prices”, 2015). The restaurant is famous for its cheese cake it attracts a lot of clients in several states in US. Increase in the number of the clients will translate into high sales then increase in profit finally high stock prices. The second stocks I bought were for Yum Brands incl. which incorporates Kentucky Fried Chicken (KFC). KFC is famous for its chicken not only in US but across the globe recently the company opened new outlets in China and India.

The expansion of the company and its customer base influenced my decision to buy its stocks. I bought twenty stocks at a price of USD 74.80 (“Stock prices”, 2015). The third set of stocks I got from McDonalds. It is also one of the leading chains of restaurant across the globe. The reason I bought its shares is more similar to that of Yums Brands Incl. but in addition to that, the stock prices for McDonalds were stable. The stock price was USD 95.05 (“Stock prices”, 2015), and I bought thirty-five shares.

The fourth set of stocks was from Charleston restaurants perhaps it might not be known. It took me time to decide whether I will invest in it or not. The restaurant has several outlets, and its consumer base is increasing at a higher rate as compared to KFC and McDonalds. Generally its stock prices had been increased with only two stagnant closing prices in the last five days. I bought thirty-five shares each at USD 62.51 (“Stock prices”, 2015). Conclusion On Tuesday, I sold the stocks, but it did not go well for Cheesefactory and Yum Brands Incl. stocks. Cheesefactory stocks dropped by 2% that made me lose USD 62.4. The biggest stock earner was from Charleston with 1% increase translating to a profit of USD 31. 85. The overall performance of my investment decision is not that bad but I made a loss of USD 14.35 (-0.14%).

Investing in shares requires patient in studying which companies have the best stock prices at what time. References Briston, R. (2012). The Stock Exchange and investment analysis,. London: Allen & Unwin. Stock prices. (2015, February 10). Retrieved February 15, 2015from http://www.msn.com/en-us/money/markets