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Lecture 7
This lecture is part of Chapter 4:
Investing in the Company
Today’s Lecture
What are Stocks
How can we find information about Stocks
How can we use Excel to keep track of our Stocks
Why Stocks
Don’t we all ….
When the company whose stock you are buying is not listed
on any stock market, you will get the certificate.
Exchanges:
• http://www.nyse.com
• http://www.nasdaq.com
• http://www.simex.com.sg/
Brokers:
• http://www.etrade.com
• http://www.poems.com.sg/
Stocks and Excel
Now let us assume that somehow you can buy and sell stocks
and that you want to keep track of your investments.
=IF(C11 = "Buy",E11*F11,-E11*F11)
=SUM($G$8:G11)
Stocks and Excel
This is nice, but what if we make a typo in column C?
Fortunately the formula can be improved.
A B C D E F G H
2
3 My 1st portforlio Transactions Year 2000
4
5
6 Date Action Stock Quantity Stock Price Total Price Balance
7
8 03/01/00 Buy YHOO 2 216 432 432
9 28/02/00 Buy YHOO 2 158 316 748
10 17/04/00 Buy MCD 10 35 350 1098
11 04/09/00 Sell MCD 5 28 -140 958
12 10/10/00 Sell YHOO 3 60 -180 778
13
This hurts!!!
But how much?
Stocks and Excel
Solution:
Let’s start.
Stocks and Excel
The beginning is easy: Let’s assume we have 1000 v-shares
Virtual Shares: Cool!
A B C D E F G H I J K L M N
2
3 My 1st portfolio Valuations
4
5 YHOO MCD Total V-shares
6 Date Qty Price Value Qty Price Value Qty Value
7
8 03/01/00 2 216 432 432 1000 0.432
9 28/02/00 4 158 632 632
10 17/04/00 4 123 492 10 35 350 842
11 04/09/00 4 128 512 5 28 140 652
12 10/10/00 1 60 60 5 28 140 200
13
14
A B C D E F G H I J K L M N O
2
3 My 1st portfolio Valuations
4
5 YHOO MCD In/Out Total V-shares
6 Date Qty Price Value Qty Price Value Qty Value
7
8 03/01/00 2 216 432 432 432 1,000.00 0.432
9 28/02/00 4 158 632 316 632 2,000.00 0.316
10 17/04/00 4 123 492 10 35 350 350 842 3,422.76 0.246
11 04/09/00 4 128 512 5 28 140 -140 652 2,817.73 0.231
12 10/10/00 1 60 60 5 28 140 -180 200 1,483.02 0.135
13
14
= N10+(K11*N10)/(L11-K11)
Indeed, the value of the v-shares before and after the transaction
are the same
Stocks and Excel
800
600
400
200
The topics
appear
sound
enough!
Stocks and Books
The book reads reasonable enough… until you consider
what he doesn’t tell you. But this gives him away!
Stocks and Books
Be aware!
This is the
nominal
chart. I.e.
inflation and
taxes are not
accounted
for.
Stocks and Books