EIB Test April 2008 | Page 106

Raina You UC Riverside Extension Center, 1200 University Ave, Riverside CA 92507-4596 Tel : (951) 329 – 2536 Email : [email protected] The share prices were going up a little in two days. There was news about Ragnarok 2, the next game after Ragnarok online, the most popular game of the company. Because of the success of Ragnarok online, many people highly anticipate the next work. Therefore, when people get the news that Ragnarok 2 will release in Q4 2011, the share prices increased from $1.67 to $1.77. However, the share prices were going down rapidly in the other days of the stock project. The reason why the prices decreased is that the new game has been in the stage of development for years. Also, there are many active competitors who already made successful games, and new competitors like Changyou.com, Chinese company in the same market, threat the position of Gravity Co. Existence of strong competitors has negative effects on the price of shares. I invested just $6000, 20% of my money, but that $6000 changed to $5600. The share prices was $1.7, so I can buy a lot of shares, but in the ends it turns into hidden risk that make my profits smaller.