EIB Test April 2008 | Page 103

Raina You UC Riverside Extension Center, 1200 University Ave, Riverside CA 92507-4596 Tel : (951) 329 – 2536 Email : [email protected] AMZN $226.00 $224.00 $222.00 $220.00 $218.00 AMZN $216.00 $214.00 $212.00 2011/08/03 2011/08/01 2011/07/30 2011/07/28 2011/07/26 2011/07/24 2011/07/22 2011/07/20 2011/07/18 $210.00 Before I started the stock project, I decided to put 40% of my money in Amazon.com because the company could give me a big return. In the first day of the stock project, I bought 56 shares, and I paid $212.53 at each share. The graph of share prices is pretty fluctuate. At first few days between July 18 and 20, the share price increased up to $220.05. It is because the company entered into a bond with CBS corp. for offering video streaming services of CBS corp. and the Borders Group, an international book and music retailer company, has gone into liquidation. The deal with CBS corp. is helpful for users of Amazon.com to enjoy the streaming video services. In addition, downfall of the Borders Group has a big meaning to Amazon.com and book retail company both. The liquidation of off-line book store chain is evidence to show how important to use a new technology, the Internet, for adapting in the market. In the other words, the liquidation of the Borders Groups means that Amazon.com will have more possibility to dominate the market. Also, it can be interpreted that online shop is getting close with our life. At the second period, between July 20 and 26, the prices of share decreased from $220.05 to $214.99. Amazon.com will report second quarter earnings after the market close at July 26. It is a natural result that the price of shares decreased before the report because Amazon.com is a high risk company based on the Internet. High risk company can make money a lot at short time, but that means also investor can lose their money easily. In the next period from July 26 to 27, we can see the line that rapidly increased because Amazon.com proves that the company still exists as a e-commerce giant. The income from the