Tuesday, March 17, 2009

Stock Litericy

I like reading newspapers when I wait for the bus. It is not only a good way to kill time, but it also keeps e updated on the lasted news and some interesting stories. Through experience of reading newspapers for many years, I learned how to buy the stocks in the business section. I like to invest as a hobby.

For example, during the economic crisis, the stock markets collapsed disastrously. You could imagine that how many people were upset. In my opinion, however, the meaning of crisis is the combination of danger and opportunity. So, I decided to buy some stock during the economic crisis. Firstly, I roughly analyzed each stock and what its company did through my local daily newspaper. I focused on the real estate category of listed companies as most of people did. Then, I compared the price of each stock. I deleted some of them with a price higher than 7 Yuan since I should be careful. One day, I suddenly found a headline stating that the government had set up a package of economic stimuli. The main trend of this project is to improve infrastructure, such as high ways and bridges. When I read this news, I was thinking about how the prices of road and bridge construction shares would increase because of this policy. So, I collected the related data and news. Based on the data and reports, I was sure the price of this kind of share went up. So, I bought 1,000 shares of the Sichuang road and bridge company. The price of it was 5.7 Yuan per share. The result was that its price increased 1.4 Yuan per share; this meant that I earned 1400 Yuan.

Because this kind of literacy, it makes me think about the finance and analyzethe company. Also, I get lots of benefits, such as earning money and practical experience.

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