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Astock is a share in the company’s ownership. It signifies a claimon the earnings and assets of a company. As the investor obtains morestock, the ownership stake also increases. Whether pertaining toequity, stock, or shares, it all implies the same thing. Being ableto own a company’s stock denotes being among the many owners of acertain company. Technically, this implies that the investor becomean owner of the company as well. Being an owner, the buyer of stockalso shares in the earnings of the company and has the right to votewhen it comes to any concern related to stocks.
Inthis activity, the situation states that I initially had the watchappraised. The watch was used to own by George Washington. TheAntiquesRoadshow expertappraisedthe watch for $100,000. When I invested the stock, I invested itequally into 5 highly performing companies. This means that eachcompany gets $20,000 as my investment. I noticed that there had beenfluctuations in the performance of the stocks. While one company hadgradual decrease in stock price, other companies decreased at afaster rate and fluctuated constantly. When I finally saw that Icould obtain profit from the stocks I invested, I sold the stocks andused to call option to buy other stocks that are doing well.
Fromthis activity, I learned two kinds of investors. Thefirst type of investors are those who believe that investing in acompany’s stock is a like gambling and the money invested serves asthe bet. The second type of individuals are made up of those who areaware of the reasons why they must invest for the long-run but theydo not have the idea how and where to start.
Pbs.org,.(2014). NOVA Online | Trillion Dollar Bet | Play a Virtual Market.Retrieved 4 May 2014, fromhttp://www.pbs.org/wgbh/nova/stockmarket/virtual.html