Bethesda-Chevy Chase High School

Basic Stock Knowledge

Natalie Tomeh
Website
1,860 Words
2014-2015

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Table of Contents
Introduction 3
Goal and Context

Investigating 3
Prior Knowledge

#3

New Knowledge

#4

Planning

#5

Creating criteria for the project

Taking action #5
Reflecting

#6

Bibliography #8
Appendices

#9

Objective A: Investigating #10

Objective B: Planning

#11

Objective C: Taking action #12

Objective D: Reflecting

#13

#5

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Basic Stock Knowledge

My goal was to learn more about the stock market through research focused on three
stocks. I am looking at stocks that I think, based on my knowledge of them, would increase in
value at least 10% from October 13 to November 11.
This would increase my global knowledge because the stock market plays a huge role in
our economy. We live in a capitalist society, and the stock market is a way through which people
can participate in it. The stock market adds the role of investor to a corporation, so more
people can profit from the business success.
Stocks are a piece of a company, the price of which fluctuates based on how much
investors determine the company is worth. Investors buy stocks when they think the company is
going to be worth more in the future, and sell when the company doesn't seem to be improving.
Stocks are a way for a company to raise money to expand itself, so they can be profitable for
everyone involved.
The sources I used were Wall Street Survivor, an organization that provides crash
courses in stocks for people trying to figure out how to trade; CNBC, a reputable financial news
organization; Investopedia, an online encyclopedia for stock vocabulary; and various articles
suggested by CNBC giving up to date information on the stocks I followed.
On CNBC I saw that Apple opened on October 13 at $95.55 and closed on November 11
at $109.70. The price of the stock increased steadily after October 16, doubling in price what it
was for two months prior. It fell 5 points ($5) between 10/10 and 10/16.

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An article I read analyzing the stock informed me that on October 13 analyzers at Bernstein
valued Apple at $120, $10 more than it was worth at that time causing the stock to go up soon
after. Additionally, it was stated that products like the Apple watch will increase profit in the
App store. In 2015 the program Apple pay will also raise margins, so many are saying that Apple
is a good stock to buy (Apple).
On CNBC I saw that Netflix opened on 10/13 at $451.25, and closed on 11/11 at $382.55.
The value decreased dramatically after 10/15. After the stock recovered around the 24th,
fluctuations between the $375 and $400 range were not indicative of anything out of the
ordinary.
An article I read analyzing the stock informed me that on October 15, Netflix released its
earnings announcement, an important event for any company because it is indicative of its
success. The companys fourth quarter projections came in lower than expected due to the
increased subscription price. The price increase took effect in May 2014, but the impact was
offset by the release and enthusiasm for Orange is the New Black season 2. Additionally, the
company did not reach its subscriber goal for the third quarter: it gained 280,000 subscribers in
the US, but was expected to have gained 1.37 million (Udland). The subject of net neutrality is
also a player in the success of Netflix going forward (Comcast).
On CNBC I saw that USO opened on 10/13 at $32.04, and closed on 11/11 at $29.42. The
stock is steadily decreasing. It fell quickly after October 13 and October 31 (Comcast).

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An article I read analyzing the stock informed me that the fall is caused by dissent within
Oil Exporting Countries (OPEC), about oil prices. Countries like Saudi Arabia want the price to
be lowered to compete with other energy sources, because their supply is increasing. Lower oil
prices puts pressure on other energy companies, so their stocks will hurt as well (Oil).
The Dow Jones Industrial Average (DJI) is one portion of the total market. It is good to
look at because it an give information as to how the market is doing as a whole (Investopedia).
On CNBC I saw that DJI opened on 10/13 at and $16,535.48 and closed on 11/11 at
$17,614.97. DJI has been steadily increasing since 10/16, after it fell on 10/13. It had been
falling rapidly since 10/8, but has increased to more than it was two months prior.
Worries about Ebola, another European downturn, and weak retail sales were causing it to
go down. The market turn around is thought to be linked to the comment from James Bullard,
president of the Federal Reserve bank of St. Louis, saying that the government should rethink
their cuts in bond investments (Waggoner).
My plan for my project began by picking out three different stocks that had a hold in
three very different areas of the market. Apple (AAPL) is a very big player in technology, Netflix
(NFLX) is a interesting stock to look at because of the popularity of binge watching and its
Netflix-only tv shows, and US Oil (USO), which is an exchange traded fund. Then I decided to
look at the Dow Jones Industrial Average to see how the market did during that month, as well.

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From a video from wall street survivor I learned about exchange traded funds, better known as
ETFs.
Collecting all this information required a lot of planning because it could be found all
over the internet from sources with varying degrees of credibility. To self evaluate my project, I
decided that if the website I made was clear and concise, then it was good. If the the stocks that I
observed supported the basic information I collected, then I had done my project well.
Everything that I learned is reflected in an organized way on my website.
The project I created fulfills my goals, because it shows the effect real life events can
have on stocks. Over a million people who are subscribed to Netflix have an extra dollar added
on to their monthly bill, everyone was bombarded with the news of the iPhone six and all its cool
new tricks, and US Oil was greatly effected by decisions made between countries all over the
world. Stocks play a huge role in the world economy, so by understanding stocks, even on a
basic level, we can have a greater global knowledge.
My project is successful in teaching some basics of the stock market clearly and in a
organized way. Through each analysis of the stocks I picked, certain themes appear that can help
us to understand what to look for in stocks. Additionally, my reading a stock profile section is
extremely useful in trying to understand all the information that we are given about stocks.
This project helped me grow as an IB learner because it forced me to figure out how to
make something clear and specific with few restraints on my subject. It encouraged me to expand
my global understanding by looking at stocks that have an effect on our society: energy,

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technology, and pop culture. The long time span forced me to work diligently and plan for
myself when I should sit down and be productive.

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Bibliography
"Apple (AAPL) Stock Is Gaining Today on Higher Price Target." The Street. N.p., 13 Nov. 2014.
Web. 13 Nov. 2014.
"Comcast Corp (CMCSA :)." Comcast Corp. N.p., n.d. Web. 11 Nov. 2014.
"ETFs (Exchange Traded Funds) | What Is Investing." Wall Street Survivor Investing Library.
N.p., n.d. Web. 23 Oct. 2014.
"Investopedia - Educating the World about Finance." Investopedia. N.p., n.d. Web. 23 Oct. 2014.
"Oil ETFs To Remain Depressed As Saudis Target Lower Prices." Yahoo Finance.
ETFtrends.com,13 Oct. 2014. Web. 16 Nov. 2014.
Presidential Pop for Netflix." Interview by CNBC. Janney Managing Director. CNBC. Tony
WIble, 10 Oct. 2014. Television.
Stock Market Photo. N.d. Stockrockandroll, Wall Street.
Udland, Myles. "NETFLIX CRASHES AFTER EARNINGS." Business Insider. Business
Insider, Inc, 15 Oct. 2014. Web. 11 Nov. 2014.
Waggoner, John. "Stocks Rebound, but Investors Still Wary." USA Today. N.p., 17 Oct. 2014.
Web. 16 Nov. 2014.

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Appendices

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Objective A: Investigating

Process Journal:
I picked out three different stocks that had a hold in three very different areas of the market.
Apple (AAPL) is a very big player in technology, Netflix (NFLX) is a interesting stock to look at
because of the popularity of binge watching and its Netflix-only tv shows, and US Oil (USO),
which is an exchange traded fund.
Then I will look at the Dow Jones Industrial Average to see how the market did during
that month, as well. From a video from wall street survivor I learned about exchange traded
funds, better known as ETFs.
It was recommended to me to use finance.yahoo.com or cnbc.com to track these stocks.
Resources:
https://www.youtube.com/watch?v=GtlzSpoDags - Video on ETFs
cnbc.com - Financial news outlet, gives up to date information on stocks
investopedia.com - Encyclopedia of stock vocabulary

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Objective B: Planning

My Plan:

chose stocks

follow stocks for thirty days

look at the news as to why the stocks are doing what they are

compare the stocks to the market as a whole

research background on stocks

Look Up:

Extended Hours
Volume
Market Cao
Shares Outstanding
Earnings
Revenue
Dividend Yield
Beta

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Appendix C: Taking Action

DJI

USO

NFLX

AAPL

What are Stocks?

a piece of a company
fluctuate based on investors understandings of how much the company is worth

Exchange Traded Funds (ETFs)

bought and sold in the same way stocks are
an easier way to get into a market that is usually very expensive
tracks an index, commodity, or basket of assets
follow the price of a specific set of assets
traded on US stock exchanges
easier and cheaper way to get into a sector that is otherwise very expensive

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Appendix D: Reflecting

Criteria:

succinct

gives a general overview of stocks

uses the example stocks to convey important factors in the worth of a stock

How I Improved as an IB learner:

Inquirer: I learned how to narrow my research to have a succinct, specific project

Knowledgeable: I now know more about stocks and how to trade them. I can more effectively
participate in this sector of our economy.

Thinker: I was able to connect information from a variety of sources.

Communicator: I was able to present my information clearly on my website.
Principled: I will take this knowledge to chose how I invest, in order to support only socially
responsible companies.

Open Minded: I did not dismiss trading in the stock market as blindly bending to corporate
interests, and instead saw it as a way to benefit from the success of capitalism.