A private foundation has awarded your team $50,000 that is to be invested in a portfolio of four common stocks. The stocks available for investment are listed on the NY and NASDAQ stock exchanges. The goal of your team is to return the $50,000 to foundation on May 1, 2002. Any increase in value beyond the initial $50,000 is yours to divide among your team members.

In return for trusting you with $50,000, the foundation is expecting you to maintain accurate, complete and timely records of your investments, and to make periodic investment performance reports. The basic requirements are listed below:

1. The entire $50,000 is to be invested in common stocks.

2. You must maintain an investment journal consisting of a three ring binder divided into sections with labeled tab dividers. Assemble your binder in the following order: 1) a section for your assignment and points earned record, 2) a section for each stock in your portfolio, - 4 sections, 3) a section for your team's responses to specific economic questions. For each stock in your portfolio you must have the following information:

A short statement, ½ to ¾ typed, double-spaced, page, which indicates your reasons for purchasing the stock.

A chart that records a running total of the stock's gain or loss is to be created and up-dated every seven days.

Investors keep watch for newspaper and Internet articles about their companies. Copies of articles must be a part of your journal. This chart must include the following : Stock name, Date purchased, number of shares, current market price, current value, original cost, gain ( loss)

3.Stock trades can be made on the second and fourth Tuesday/Wednesday of each month. The stockbroker (your teacher) charges 2% of the sales price for his fee. All trades must be made through your stockbroker and accurately accounted for in your records. A short statement, ½ to ¾ typed, double-spaced, page, which indicates your reasons for making the trade, must accompany each trade and be included in your journal. Selling a stock will require that you immediately purchase another stock. For this new stock, a short statement, as detailed above, is required explaining why you selected this new stock.

4. Each month the foundation (the class) expects a brief report from each investment team that describes their portfolio's gain or loss and its current total value. The foundation's membership expects to be informed as to why your team's portfolio has increased or decreased in value. The team with the best investment performance, largest increase or smallest decrease in portfolio value, will be rewarded for their efforts. Each team's stock selection and investment performance will be reported on the class website. See record of investment performance.

5. As we learn more about economics, you will be asked to apply particular economic terms and theories to your investing experience. Maintain a separate section in your investment journal for your responses to these questions. Each response will be graded according to the investment journal-scoring guide.

Assignment Dates

1. Team quiz on investment terms and methodology

a. Dec. 4 O, 5 A

2. Stock selection and initial report to the foundation

a. Dec. 20 O, 21 A

3. Schedule of monthly foundation reports

a. January 25 O, 28 A

b. February 19 O, 20 A

c. March 19 O, 20 A

d. April 23 O, 24 A

e. May 23 O, 24 A

4. Specific economic questions will be assigned as we move through the curriculum.