Scenario 1
As a supplement to our tutorial, we have created some investment scenarios to help you practice/test your investing philosophy.
The goal: maximize your investment gains.
Scenario 1
You own 1000 shares of a company called XYZipper (ticker: XYZ). You bought them 5 years ago for an average price of $25.00 per share when your grandfather gave you the money to invest in the stock market. You also have $2,000 that you are considering investing as well. However, the share price for XYZ has risen from $31.00 to $36.00 in the last 3 months. With the recent increase in price, the PE ratio is a bit higher than it normally has been. You do some research but you can't seem to find out any real reason why the stock's price has increased recently. You are wondering if the share price might go back down in the near future. In this scenario, you have 5 choices.
The current share price is $36.00.
Click on the appropriate link below and see what happens next.
- invest all your money at the current price
- invest some of your money at the current price
- do nothing
- sell some of your shares at the current price
- sell all of your shares
Or, try your luck with Scenario2 (ABC Pizza)
If you feel good about the investing decisions you will make, feel free to continue to the next section of our tutorial.