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STOCK INVESTMENT Having an imaginary million dollars, with the purpose of investment, makes it quite impossible to come up with the right decision of how to maintain a high level of financial security, as the money is not real. Therefore, the considerations of security will not be here quite as important as they are in the field of real stock trade. Nevertheless, there are a certain guide lines, which I believe the potential investor should follow, is he is make profit. First of all, as practice shows, the stock market is even more sensitive to the current political events, than to the purely economical trends. Also, as we all know, the biggest profit in the stock market is strongly associated with the government defense contractors and also with the companies that promote new technologies. Given the fact that current White House administration has clearly chosen the course of escalation of international tensions, one does not have to be a prophet to realize that the only way to to make guaranteed profits, while enjoying the full security of the investment, is to buy the stocks of defence contractors and also the stocks of the companies, whose technological innovations can be used for the military purposes.
Only the problem here is the fact that most of such companies are not public, but there are some listed in Yahoo Finance, which fully fit the criteria. Also, the next best way to invest, in my opinion, is to buy shares of mining exploration companies, which promote newly found copper deposits. It is no secret that the price for copper is constantly rising, which has to do with China's rapidly increasing demand in raw materials. Here is what I will do with my million: 1) I will spend 200. 000 $ to buy the stock of Ballistic Recovery Systems Inc. , at 1. 47 $ per share.
Thus, I will have 136. 000 units. Company's basic chart shows an overall steady growth over last half of year. Although share price drop sometimes, it rapidly recovers, which is another indication of financial stability. If current trend continues, I should be able to make 50. 000 $ over the next year. 2) I will invest 200. 000 $ into Armor Holding Inc. , buying shares at the price of 51. 57 $. This will give me 3. 878 units. It is rather a short term investment.
There is no doubt that the demand for the armored motor vehicles will rise drastically, with the impending invasion of Iran, which is the matter of very short time. As the company's structure indicates, it also includes a foreign arms manufacturing companies, which makes investing in Armor Holding Inc. even more appealing, from the financial point of view, because it provides the investor with possibility to make profit, even if government applies some rules and regulations that might negatively affect the domestic trades. 3) The third company that I will invest into is Allied Defence Group. It currently trades stock at 15. 30 $ per share.
Although its basic chart shows a steady decline, in the last few months, there is no doubt in my mind, that the shares price will recover back to the level of May of 2006, when they were traded at 22. 00 $. Again, the temporary financial decline, which this company experience now, will soon be over. I will invest 200. 000 $, which will give me 13. 071 units. If price for share goes back to what it was traded for in May 2006, I will be able to make cool 87. 567 $. 4) The forth company on my investment list is American Energy Group Ltd. The current bid for its shares is 0. 60 $, which makes it a perfect time to by company's stock. I will spend 100. 000 $, which will give me 166. 666 units.
The actual number of units might actually be smaller, as the price for them will rise, in the process of trade. Just as in the case with previous companies, company seems to be in the state of financial stagnation, but knowing the fact that Earth's energy resources are several limited, leaves no doubt in the fact that investing in American Energy Group Ltd. is the right financial decision. Thus, out of one million dollars, which I had at the begining, I've invested 700. 000 $.
The other 300. 000 $ I decided to keep as the financial reserve. Bibliography: Yahoo Finance Market Tracker. Stock Screener. (2006). Retrieved October 21, 2006 from web
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Research essay sample on Million Dollars Stock Market
