S&P500 and DOW set their record highs on July 13th.This week DOW gained close to 295 points and S&P500 gained close to 22 points.Experts believe that the record increases in the market are from investors (people who invest money in stocks and buy shares) who believe that economy is doing well. Consumers are helping the economy grow by continuing to spend money on businesses. Let us see what happens next week.
Happy 100th Birthday to Kisses Chocolates!
The Hershey Company celebrated the 100th birthday of the Kisses by unveiling "The World's Largest Hershey's Kisses Chocolate" at a birthday event in Hershey, Pa.Imagine a 12-feet tall and 30,540 pounds Kisses!!That is how big it was and it took nine days to make. "Hershey's Kisses Chocolates is one of the world's most beloved brands, helping people connect and share affection for the last 100 years," said the Hershey Company. What a great way to start the next 100 years of Hershey's Kisses!! Congratulations!!
Kisses Chocolates were first sold in 1907 and each chocolate was wrapped by hand. Since 1907, milk chocolate is the most popular flavor.The Hershey Company (Ticker HSY) is the largest American manufacturer of quality chocolates with $5 billion in annual sales. It provides jobs to more than 13,000 employees worldwide.The Hershey Company sells Hershey's, Reese's, Hershey's Kisses, Ice Breakers, and other products.
Magic of Harry Potter amazes again!
The latest Harry Potter movie"Harry Potter and the Order of the Phoenix" had a record Box Office sale of close to $45 Million for a Wednesday opening.This movie is the fifth installment of the series based on J.K. Rowling's fantasy best-sellers.It has teen wizard Harry (Daniel Radcliffe) teaching class mates magic spells to defend themselves against the coming battle with the forces of dark Lord Voldemort. The movie is produced by Warner Brothers, a unit of Time Warner.Time Warner (Ticker TWX) has annual sales of $45 billion and it is a leading media and entertainment company, whose businesses include AOL, Time Inc., Time Warner Cable, HBO and other digital businesses.
Shortage of talent for the Pharmaceutical and Biotechnology research
Pharmaceutical and Biotechnology companies are getting concerned about finding the future scientific talent in the US to grow their business.US universities are not providing enough Ph.D. graduates to help do the research in these areas. Why is that?Perhaps science subjects have not created the needed excitement among kids and students who want to be scientists and help the world with their inventions.
According to National Science Foundation, in 2005 US universities graduated over 6300 Ph.D.s in biological sciences.This number is only 1000 more than it was 10 years ago while the demand for such people continues to grow significantly.Right now, 3 out of every 10 Ph.D. students come from abroad and some of these foreign students will go back to work in their homeland. What should we do?
How does a business make money? What is a profit?
The money businesses make is called Profit.To understand profit better we need to also understand Revenue and Cost.
Revenue is the money businesses get when they sell goods and services to the people who need them.
Cost is the money businesses spend to make goods and provide services. This includes money to buy the materials, salaries to the workers, utilities (gas, electricity, rent, and phone), etc.For example, McDonald’s buys meat, potatoes, eggs and others things to make and sell burgers and fries.
Businesses make profit when they bring in more money by selling its products and services than they spend on the costs.In other words, profits are revenue minus the costs.For example, McDonald’s revenue for 2006 was $22 billion for selling, burgers, fries, soda, and many other goods.Its costs were $15 billion.So McDonald’s profits would be $7 billion($22 billion - $15 billion=$7 billion).What happens if McDonald’s costs had gone up to $23 billion because the meat prices went up? Then, McDonald would have lost $1 billion ($22 billion revenue - $23 billion cost = - $1 billion). That is called loss. How does profit or loss affect the stock price of the company? We will discuss it in the coming issues.
Your Favorite Stocks (For details go to Archives or click Volume 5)
Company
Company known for?
If you bought one stock in Jan, 2007
This week stock is at?
How much did you gain or lose?
Films, Mickey Mouse, Toys, Entertainment, and more...
$34.20
$34.37
$0.17
Ready to eat foods like Frosted Flakes, Cereals, Rice-Krispies, Nutri-Grain, Eggo and more...
$49.89
$52.23
$2.34
Fast food hamburgers, restaurants and more...
$43.87
$51.91
$8.04
Coming Soon!!
How many Japanese Yen can you buy for a Dollar?
How Oil Prices and the Gas Price per Gallon change?
What is a Business? Business offers goods and services to customers for money.Businesses create jobs for people who work to make goods and or provide services for other who need them.
Who are the Workers? The people who work at the businesses are also called workers.Workers are paid money which they use to take care of their loved ones.When these workers are paid money they pay some money to the governments, called taxes, so that the government can provide the services to the communities where we live such as schools, police, fire station, parks, roads, and many more.
What are Goods? Goods are things that you can see, such as toys, balls, dolls, candies, cereals, etc.
What are Services? Services are things that are done for others for money, such as, barber gives you service of hair cutting, waiter serves you food at the restaurant, etc.
We use information from multiple sources - websites of companies/stock exchanges/news, newspapers, library, journals, and school books.
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