EIB Test April 2008 | Page 82

2       I   expended   $7,512.82   to   buy   521   shares   of   Yahoo!   Inc.   stock   on   July  18.  Since  I  invested  for  2  days,  the  price  of  a  share  obviously  dropped   to   $1.11   per   share.   This   price   was   the   lowest   price   in   a   year.   It   can   be   inferred   that   the   price   went   down   by   rivals.   According   to   the   prediction   by  eMarketer  on  July  20,  Yahoo!  Inc.  will  lose  their  spot  as  the  top  seller  of   display  ads  in  the  U.S.  to  Facebook.  In  addition,  competitors  are  working  a   better   job   to   get   more   users   to   use   their   web   pages.   ComScore   reported   the   average   time   people   spent:   6.7   hours   on   Facebook,   4.1hours   for   Google  and  3.4hours  for  Yahoo.         Yahoo!  Inc.  is  the  only  company  from  which  I  lost  money.  From  the   first  day  I  spent  money  to  buy  521  shares  of  Yahoo!  Inc.,  I  lost  $687.72  in   total.   The   price   per   share   of   Yahoo!   Inc.   continue   going   down.   Besides,   NewsyStocks   reported   that   experts   predicted   that   Yahoo!   Inc.   will   post   $0.22   earning   per   share   next   quarter.   This   amount   is   not   so   much;   in   addition,   there   are   numerous   powerful   competitors   even   though   Yahoo!   Inc.   does   not   have   distinctive   features   until   now.   So,   I   plan   to   sell   the   shares  to  prevent  from  losing  money. 2. Microsoft  Corporation  (MSFT):  Low  risk  or  Blue  Chip   Most  of  all,  the  reason  I  chose  Microsoft  Corporation  as  a  low  risk   or   Blue   Chip   company   is   that   this   company   is   ranked   on   the   list,   The   World’s   Biggest   Public   Company.   According   to   NET   MARKET   SHARE,   Windows  made  by  Microsoft  Corporation  had  approximately  90%  of  the   market  share  of  the  client  operating  systems  for  usage  on  the  Internet  as   of   October   2009.   Out   of   this   report,   I   thought   this   company   is   famous   and   firm  enough  to  invest  as  a  low  risk  or  Blue  Chip.       !(#"$% !(#$$% !'#"$% !'#$$% !&#"$% !&#$$% !"#"$% $' )* () $' !$ ** )* % +) $' !$ ** )! % $) $' !$ ** )! % *) $' !$ ** )! % !) $' !$ ** )! % ") $' !$ ** )! % &) $' !$ ** )! % ') $' !$ ** )! % () $' !$ ** )! % +) $( !$ ** )$ % *) !$ ** % !"#$%&'%"&()*"%& +,-.&     ,-./%