A. In the share market game, I invested in 50 BHP shares costing for $29 per share. Altogether including the $20 brokerage, it cost $1,450. The main reason for investing in BHP is because it is a visual company in the media has diverse mining assets and my parents work in the mining industry and worked for BHP in the past. Since 1851, BHP has extracted and processed minerals, oil and gas (Petroleum) in Australia and America with over 60,000 employees and contractors (BHP 2018, About us). In Australia, they are focusing on extracting iron ore, copper, coal and nickel. Whereas, in America it is the leading producer of copper as well as zinc, iron ore and thermal coal. There are many other minerals BHP has produced and is one of the biggest global …show more content…
I invested in BHP on the 12 March 2018 and haven’t yet sold my 50 shares. Over that time, I have been at a loss because of the $20 brokerage and there haven’t been any long-term investments. However, the share prices produced an uptrend on the 5th of April, since the announcement that the BHP operations review had ended (ASX 2018). With BHP commodity prices performing an increasing profit by 25% and there has been a revenue growth of 16% (Harrison, T 2018). Share prices now are at a high in the market compared to 2002 at BHP’s lowest point Share …show more content…
The consumers will also have to spend more to buy BHP’s products, resulting in a downfall in sales, which will lower stock prices. However, if the AUS dollar drops it will benefit the exports due to their products will be sold at a cheaper rate (Ontario Securities Commission 2018). This makes BHP cheaper for consumers to buy their products and stock prices rise. BHP will benefit from a weaker Australian Dollar due to the volume and prices of exports and affect a resource stock (Collett, J 2014). - Natural or man-made disasters: Another impact is if a natural or man-made disaster like a cyclone, earthquakes or/and floods, will stop work in the mines, reducing products for BHP to sell. For example, Brazil has gone through its worst environmental disaster in Brazil’s mineral mines which has damaged BHP’s reputation and has cost a fortune. It has disturbed BHP’s reputation because BHP is responsible for the tailing dam bursting (Wade, M 2015). This disaster set back BHP in 2015. During the Sharemarket