TRADING AND TRACKING OF CHOSEN STOCK My chosen stock was in Dell Computer Company. I bought into thestock on 23 November 98, at $20.63 per share. My investment was startedat $30,000.00 prompted by the idea that the impending Christmas seasonwould generate higher sales in the computer market. Advertising for alltypes of computer equipment is intense and Dell seems to be targetingfamilies and students, in particular. Tracking the stock reinforced my choicesince it seemed to do very well for the term of the project. I noticed that the stock’s per-share price rose within three days of my purchase, but fell for a brief period before 1 Dec 98. Dell stock climbed steadily after 1 Dec 98indicating strong sales. (Check the attached table charting the stock’sgrowth through the term of the project.) I would recommend this companyas a strong investment due to the rise in sales of newer computers andrelated software. The growth of Dell Company stock was impressive andmy sellout price rose to $73.94 per share. My total gain, by investment inDell, was $73,329.67. My initial purchase was 1,426 shares @ $20.63.I paid the broker a 2% commission making the share price $21.04. On23 Dec 98, (last day of the project) the per share price was $73.94. I alsohad the balance of $20,000.00 that I did not invest in Dell and this gave mean ending balance of $93,329.67 at the conclusion of the project.-7-ECONOMIC CONCEPTSThe first lesson that I learned from this project is that some of myclassmates felt that I was investing in a risky stock that could lose quicklyin today’s volatile market. I learned from reading and class discussions that investment has to be well informed to be profitable. I noticed some ofthe “up and down” movement present on the market today, but based onwatching the news, internet searches, and stock predictions; I feel that Imade an educated choice. Very high risk stocks may get you a good retu...
