Stock Price Performance Essay

Submitted By CALEBHENRY
Words: 757
Pages: 4
Open Document
[pic]

What is A Stock Screener?
Grade Level: K-12 and up
Subjects: Economics, business, language arts, social studies
Time Period: One class period
Resources: Internet access
Objectives: In this lesson, students choose stocks from thousands of companies they may have never heard of. They will use a tool called a stock screener to select stocks that fit their investing criteria, such as price-to-earnings ratio, earnings growth, and the past year performance. This technique will allow students to find stocks efficiently for the Global Stock Game (GSG).
Background: Stock screeners used to be expensive and available to only professional money managers. Now, people can use a stock screener free from Yahoo! Finance http://screen.yahoo.com/stocks.html. The Yahoo! Stock Screener consists of eight categories (criteria). Each one of these variables will help students select stocks that meet their criteria from a database of over 6,000 stocks. The eight categories include: • Industry • Analyst recommendation • Maximum or minimum share prices • Market capitalization • Price-to-earnings ratio • Average daily volume • One year estimated earnings growth • One year stock price performance
To use this screener, students don’t have to select all criteria at once. For example, some students may be interested in only stocks that have increased in value over 50% for the past year. They would select the last criteria (one-year stock price increased), set the value at greater than 50%, and leave the other seven unchanged. The screener will bring back over 700 companies that meet these criteria. Now, they have to fine-tune their screening by adding more criteria such as the industry, for example - semiconductor. Then, students will find only a few companies that meet these criteria. As they learn more about these criteria through this lesson or other lessons on this Web site, students will find this type of screening tool helpful in selecting stocks for investments.
To analyze the screening results, students will look into additional variables, such as price-to-earnings ratio, market capitalization, average daily volume, and others. By clicking onto the heading of these variables from the top, they will see the stock list in ascending order or see the stock list in descending order by clicking onto the heading from the bottom.
Activities:
1. One of the investing strategies is to select high growth small-cap companies. To find small-cap stocks from the screener, students should select the “Market Cap” for under $500 million and keep all other variables in the “Any” position. Now, complete the table below to narrow the selections.
|Small-cap companies selection criteria |
|Industry |P/E ratio |%Growth |% Price Increase |# Of Results |
|1. Any |Any |(50 |(50 | . |
|2. Software |Any |(50 |(50 | . |
|3. Software |Max. 30 |(50 |(50 | . |

1. Another strategy is to go with the Wall Street professionals. To find stocks that analysts are presently strongly recommending, students should set “Analyst Recommendation” to the “1” position. Now, complete the table below to narrow the selections.
|Analyst recommendations selection criteria |
|Industry |P/E ratio |%Growth |% Price Increase |# Of Results |
|1. Any
Show More

Related Documents: Stock Price Performance Essay

Essay on Week 12 Assignment Chingos 10 11

incentives also encourage stock ownership. Three forms of awards • Capital stock or the right to purchase or receive capital stock under specified terms and conditions • The right to receive cash under specified terms and conditions • A combination of any of the foregoing Stock options, restricted stock, and performance awards consisting of shares, units, or cash figure as the primary forms of long-term incentive and capital accumulation plans. Other approaches, such as phantom stock, are far less prevalent…

Words 1761 - Pages 8

Efficient Market Hypothesis

that a stock was going to rise 10% in a year, you would try and buy it immediately.  But if everyone has access to the same information then no one would sell! The stock price would rise immediately.  A forecast about favourable future performance leads to favourable current performance.  Since new information is unpredictable, prices should follow a random walk—price changes are random and unpredictable. Efficient Market Hypothesis  Efficient market hypothesis says that the stock prices reflects…

Words 1544 - Pages 7

Essay on Stock Project

Microsoft, Dell, Sina Corp, and Sohu Media’s common stock performance were tracked and followed. These companies were picked on individual preferences and will be compared to the S&P 500’s performance for the same time period. This was done to see if the performances of randomly picked stocks deviate far from the performance of the market as a whole. This month had two events that had substantial effect on the market, . Hurricane sandy closed the stock market for three days and the results of the election…

Words 582 - Pages 3

Topic 4 Essay

small-cap stocks (bottom 50%) minus the return on large-cap stocks (top 50%) – HML(t) (High minus Low): The returns on high book-tomarket stocks (top 30%) minus those on low book-to-market stocks (bottom 30%) ri  rf  ai  bi  MKT  si  SMB  hi  HML  ei E  ri   rf  ai  bi  E  MKT   si  E  SMB   hi  E  HML  BUFN 740: Capital Markets Topic 4 4 The Value Premium     Growth stock: High market value relative to accounting measures of value – Growth: high stock price reflects…

Words 1700 - Pages 7

Company Performance Discussion Paper

Prof. Knapp Morris April, 16 2014 Company Performance Discussion The financial market, which is the stock market works exactly like the common market, with the difference than the stock market buys and sells stocks and bonds. These stocks and bonds allow people or companies that bought those bonds become owners of a portion of a private company. By buying bonds or shares, the buyer becomes owner, depending on the amount they purchase of the company. The stock market project has been developed through…

Words 517 - Pages 3

Investment: Stock Market and Market Efficiency Essay

WORKSHOP 7 ~ PERFORMANCE EVALUATION & MARKET EFFICIENCY Performance evaluation Fund performance can be compared to some benchmark or target as a way of ranking and assessing that fund. This is obviously useful to an investor who may be considering whether to invest with this fund, and can also be used internally as way of monitoring fund manager performance. Investment results need to account for both return and risk, previously we have measured these separately using for example the holding period…

Words 2390 - Pages 10

Westen Company Stock Options Case

Ventura Company Stock Options Case Executive Summary Ventura Associates, Inc. granted non-qualified time-vesting and performance-vesting options on 1 January 2001. Both types of options have a five-year vesting period. The vesting of the performance-based options is contingent upon achievement of certain annual EBITDA targets. In addition, all the outstanding options become vestable if the company undertakes an IPO. This report explains how the options should be accounted for initially and after…

Words 1417 - Pages 6

Organisaiontal structures and culture, business environment Essay

1 Criteria for evaluation 11 3.1.1Fundamental Analysis 12 3.1.2 Technical Analysis 14 3.2Market Performance 14 3.3 Sector performance and Share performance and reasons for price variances 16 3.3.1Life insurance sector and AVIVA 16 3.3.2 Bank Industry sector and HSBC 22 3.3.3 Food and Drugs Retailer Sector and TESCO 28 3.3.4 Oil and Gas Producers Sector and BP 32 3.4 The future performance of the companies 37 3.4.1 AVIVA 37 3.4.2 HSBC 37 3.4.3 TESCO 38 3.4.4 BP 39 3.5 Conclusion 39…

Words 9715 - Pages 39

Essay about Investment: Ftse 100 Index and Park Plaza

provides the performance of the portfolio which has been chosen. The content of the report include the analysis about the performance of every single shares and the portfolio, and the amendments to our investment strategy and the portfolio. 2.0 The performance of the initial portfolio The initial portfolio includes the shares: 1300 shares of BP Plc; 3000 shares Barclays Plc; 2100 shares of Park Plaza Hotels Limited; 200 shares of Autonomy Corporation Plc. Table 1: The share prices of the individual…

Words 2515 - Pages 11

Futures and Options Chapter 9 Answer Essay

A corporate treasurer is designing a hedging program involving foreign currency options. What are the pros and cons of using (a) the NASDAQ OMX and (b) the over-the-counter market for trading? The NASDAQ OMX offers options with standard strike prices and times to maturity. Options in the over-the-counter market have the advantage that they can be tailored to meet the precise needs of the treasurer. Their disadvantage is that they expose the treasurer to some credit risk. Exchanges organize their…

Words 3045 - Pages 13