Question Indicate the companies you are investing in: Select three (3) US compan

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Indicate the companies you are investing in: Select three (3) US companies that are publicly traded. Please use your knowledge and experience and pick, as many stocks as you’d like. Lastly, make sure you are practicing good diversification. Jim Cramer, Money Manger, on CNBC, plays a game at the end of his show called “Am I Diversified.” Check out a short clip to get a sense of industry diversification at https://www.youtube.com/watch?v=f3lDxexupcE.

Sources of Information: There are many ways to find such companies and the stock prices, including the New York Stock Exchange at http://www.nyse.com, Google Finance at http://google.com, NASDAQ at http://www.nasdaq.com, and http://finance.yahoo.com.

A. Indicate the amount you are investing in each company: Decide how you will divide $25,000 across the three (3) companies; e.g. $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3. You decide the amount you are investing in each company. You do not have to provide any analysis to justify your decisions. You must only provide some reason for picking that company. For example, you might invest in Ford because that company gets a lot of your money and you hear that Ford is doing well, and will continue to do well.

B. Indicate the number of shares you are buying, and the price of the shares you are buying for each company: Once you decide the companies and the amount for each company, determine how many shares you can buy. If Company 1 is selling for $42.16, then you may buy $10,000/ $42.16, or 237.19 shares. But you cannot buy a part of a share, so you decide to buy either 237 or 238. In this example you buy 237 shares, at $42.16 per share, investing $9,991.92. You won’t be able to buy exactly $10,000, or $5,000, or $25,000, but it will be relatively close.

Explanation / Answer

We would like to purchase the following company shares, which we think will give good returns in one year span horiozon

Dover is a diversified global manufacturer with annual revenues of $7 billion. Who deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. With the oil prices at rock bottom now will stabilize and gain in 6 to 12 months period will help dover to leverage the gains

Todays price is 67.04 and will invest $10,000 and shares purchased would be 149 shares amounting to investment of $9988.96

General electric the company hiked the quarterly payout from $0.22 to $0.23 per share. At this rate, GE is good for a yield of 3.4%. That’s well above GE’s five-year average yield of 3.1%.

Todays price is 30.81 and will invest $10,000 and shares purchased would be 324 shares amounting to investment of $9982.44

. Todays price is 78.50 and will invest $5,000 and shares purchased would be 63 shares amounting to investment of $4945.50

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