Master's Theses

Document Type

Thesis - campus only access

Date of Award

Spring 1959

Degree Name

Master of Science (MS)

Department

Economics, Finance, & Accounting

Advisor

Committee Chair

Abstract

The problem presented in this paper is the development and formulation of an investment formula plan for common stocks in the low price ranges which will eliminate human judgments in the buying and selling of stocks, and which will enable the investor to realize a substantial profit. Common stocks ranging in price from one-sixteenth of a dollar to five dollars were used. In order to be included in the study, a stock had to have a record of high percentages of fluctuation and a cyclic price action from low to high to low prices. The proof of the hypothesis rests on documentary research of past price fluctuations and past cyclic price movements. The future price movements of the stocks cannot be foretold. However, it is a reasonable assumption that those factors which caused previous price changes continue to exist and will cause most if not all included stocks to fluctuate in price in the future in patterns resembling past movement patterns. Prices of individual stocks were determined from financial source materials and computations were made according to the formula set forth in the plan. The derived buying and selling prices were checked against the records of each stock to determine whether profitable investments would have resulted had the formula investment plan been applied during the past seven years. These applications revealed that substantial profits would have been realized through the use of the proposed formula plan for investment.

Comments

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Rights

© 1959 Don F. Reams

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