David Rossi & Dhiraj Thakker

Investments – Professor Flaherty

Stock- Trak Portfolio Report

The stock trak game was a great opportunity to gain first-hand experience with making trades in the stock market. The experience we gained through the game gave us the ability to manage large sums of money, giving us the opportunity to recognize the importance of preparing and utilizing portfolios in the career development process, to be aware of the component parts that make your portfolio effective, and to understand how to compile and present your portfolio in a professional manner.

The initial round of investments to our portfolio was comprised of seven domestic stocks. The main goal was to acquire stable, well-known companies that would pose low risk. These stocks were selected with minimal analysis due to their market capitalizations and the associated company’s reputations. We selected several Blue chip stocks, because they appeared to match our goals of stability and minimizing risk. Since these companies are very large, well established corporations, we understood that the possibility of significant growth in equity is unlikely due to the established maturity of the companies. For this reason, we did not expect to earn our largest return in this area of our portfolio, but instead we were hoping for small growth, while collecting dividends.

The first stock purchased was Microsoft (MSFT). Microsoft is a large cap computer software company, listed on the Nasdaq. We purchased 1500 shares at 33.00/share. We still maintain a long position on Microsoft, and the stock is currently trading at 38.45, a 16.52% increase from our original purchase price. Microsoft also paid a dividend of .28/share, totaling 420.00.

The second stock purchased was the large cap global insurance company, American International Group Inc.