Decisions regarding portfolio investment are to be considered one of the major concerns to investors and banks since their goal is to have a well-diversified and profitable portfolio.
After the practical part of the project, I finally got a clear image of what trading is and how to conduct a trading transaction whether in stock or bond markets, buying or selling.
After conducting several transactions, I will be focusing to analyze the most two preferable transactions and why did I choose them.
In general, to conduct a transaction, we look at the index of the market, choose the upward sloping index, and then pick the company that is doing well among others by looking at its trend lines, its stock price and financial ratios (e.g. Earnings per share).
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AmBev (ABEV)
AmBev is a beverage company falls within the industry of consumer products, it was founded in 1999, headquarter in Sau Paulo, Brazil.
In this simulation, AmBev was my favorite stock due to their attractive prices and always moving upward. It is continuously generating revenue and its profit margin is reaching its peak, and offering good dividends. Its price per earnings ratio indicates a higher earnings growth, in addition to its positive earnings per share ratio.
It also has a low debt ratio relative to other stocks that fall in the same index which is BOVESPA. In addition to its high liquidity and profitability compared to other companies in the same sector.
These were sufficient indicators of how this stock is profitable to be added to our portfolio.
Starbucks (SBUX)
Starbucks corp. is an American coffee company, it was founded in 1971 and headquarter in Seattle, Washington. It falls in the industry of gaming, lodging, and restaurants, and it offers the best quality of