How the Stock Market Works

1949 Words Feb 4th, 2012 8 Pages
The stock market is where companies are able to sell stocks/shares or derivatives on any agreeable price. There are many stock markets around the world that operate in different countries, and the biggest two are in New York City, U.S.A, which are the NYSE Euronext and NASDAQ. So in this course we were requested to participate in a stock exchange simulation, in which we are to exchange stocks virtually based on real statistics. In this game we were to experiment with buying and selling stocks and try out different strategies, and determine which strategy generated the most profits. The main goal was to start out with $10,000 of virtual money and buy and sell stocks in order to make more profit and increase the final amount. The first …show more content…
On the other hand News Corporation and Amazon’s prices went up, but not enough to cover for the loss of R.I.M, and Netflix. Therefore I believe this is a great strategy to use, although it doesn’t generate a lot of money, instead it creates profit on a steady pace, making it preferable for long term investors. In addition a person has to be careful in which company they decide to buy their share in. For the second week I took upon a different strategy. I bought stocks in Carpathian Gold, which is a mining company that looks for efficient ways to mine gold in Brazil, and lately the have expanded their production to different parts in Brazil, which should raise their capital gain since they are going to be bringing more gold. I also bought stocks in Yellow Page’s, a company that is well known for hosting ads, and lately they have enhanced their company and expanded through the use of technology and getting Yellow Pages Apps. The third stock that I bought that week was in a company called Excellon Resources, a company that collects minerals and researches on ways that they can be used. Excellon Resources is a company that operates in Mexico and has expanded its project to more parts in Mexico, thus aiming to increase their profits. I also bought stocks in First Nickel Inc. which is a
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