Question

Get Together: Stock Portfolio Activity
Select a stock portfolio from the fictitious exchange made up of six different stocks.
You have $10,000 in fictitious cash to spend on your initial investment. You must purchase stock in lots of 100 shares each (100, 200, 300, etc.). Whatever money you do not use to buy stock will be held in cash.
Read the following fictitious Company Descriptions, and review their stock symbols and prices in the Stock Table.
Create your investment portfolio in the Initial Stock Purchase chart.
Company Descriptions

Globehopper Airlines (GHA)
Globehopper Airlines is a relative newcomer to the industry. This airline offers discounted fares to top vacation destinations. It caters to the leisure traveler more than to the business traveler. While its fares are competitive, the company has had difficulties with reliability. After a couple of close calls on the runway, its stock price fell from an all-time high of $30 per share to $22 per share. In response, the company has hired a new Chief Operating Officer (COO) from a major competitor. The stock has recovered somewhat and is currently trading for $23 per share.



Texas Tea Oil Company (TTO)
Texas Tea Oil Company is a natural gas and crude oil exploration and production company based in Houston, Texas. It operates mainly in the Gulf Coast region of the United States.

Freedom Bank Corporation (FRB)

Freedom Bank is a leading U.S. banking and financial services corporation headquartered in Charlotte, North Carolina.


Burger Bell Palace (BBP)
Burger Bell Palace offers fast-food options across the United States. It has recently ventured into the international fast-food market by opening restaurants in Europe, with very limited success. Not only is it in a highly competitive market, but it is also less well known than its major competitors. Burger Bell Palace recently has revised its menu and is offering a new Spicy Tex-Mex burger that it hopes will set it apart from the competition.


Insta-Snap Link (ISL)
Insta-Snap Link is a mobile application and website that connects users on mobile devices and personal computers. It is relatively new to the market and faces steep competition from other, more well-established companies, as well as new start-ups. The company went public only a few months ago, and stock performance has been disappointing.


Rags, Inc. (RAG)
Rags, Inc., is a clothing retailer with stores in nearly every shopping mall across the United States. The clothing is especially appealing to young millennials and is known for having an urban vibe. Quality control has been a problem recently, and some criticize it for being overpriced for its quality. Rags is currently negotiating with a popular teen musician to collaborate on a new clothing collection, but an agreement has not been reached.


Stock Table
Stock Symbol
(abbreviation of the company name)
Current Stock Price ($)
Chg
(change in stock price from the previous day)
$
%
GHA
23.00
+ 1.00
+ 4.54%
TTO
12.40
− 0.60
− 4.84%
FRB
14.50
+ 0.35
+ 2.41%
BBP
6.70
− 0.50
− 7.46%
ISL
34.90
− 0.20
− 0.57%
RAG
29.40
+ 0.70
+ 2.44%

JA in Your Future Understanding Stocks
Initial Stock Purchase
Complete the following chart to create your investment portfolio.
Stock
Symbol
Stock Price per Share
Number of Shares to
Purchase
(100, 200, etc.)
Total Cost of Stock
(share prices multiplied by number of shares purchased)
GHA
$23.00




TTO
$12.40




FRB
$14.50




BBP
$6.70




ISL
$34.90




RAG
$29.40




Total Stock Purchases
(total all the amounts from “Total Cost of Stock”)


Remaining Cash


Total Assets
$10,000



JA Take Stock in Your Future

Answer 1

Initial Stock Purchase

Stock / Symbol / Price per Share / Number of Shares / Total Cost
- Globehopper Airlines (GHA) — $23.00 — 100 shares — $2,300.00
- Texas Tea Oil Company (TTO) — $12.40 — 200 shares — $2,480.00
- Freedom Bank Corporation (FRB) — $14.50 — 100 shares — $1,450.00
- Burger Bell Palace (BBP) — $6.70 — 100 shares — $670.00
- Insta‑Snap Link (ISL) — $34.90 — 0 shares — $0.00
- Rags, Inc. (RAG) — $29.40 — 100 shares — $2,940.00

Total Stock Purchases: $9,840.00
Remaining Cash: $160.00
Total Assets (Stocks + Cash): $10,000.00

Brief rationale: This portfolio spreads purchases across airline, energy, banking, retail and fast-food sectors while avoiding the high-priced, higher-risk ISL for now. I bought an extra 100 shares of the lower-priced TTO to increase exposure affordably and kept a small cash reserve.