Investing an Imaginary $1,000,000 in Amazon’s Stocks Essay

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Investing $1,000,000 through stocks

Amazon

Investment in common stocks worth $ 400,000

The majority of the stock market is made up of common stocks. Preferred stocks, on the other hand, have no voting rights and are the polar opposite of common stock. Typical stocks provide a dividend and give voting rights to long-term investors, but they do not use those rights in most cases (Vinodkumar & Khalid AlJasser, 2020).

Walt Disney’s investment in ETFs (Exchange Traded Fund) worth $300,000

Bonds, commodities, indexes, and assets are all tracked by exchange-traded funds or ETFs. They are traded on stock markets in the same way as common stocks. ETFs with a higher trading volume and cheaper fees than mutual funds have higher and lower prices (Vinodkumar & Khalid AlJasser, 2020).

Companies to invest

Blue Chip Stocks Investment of $100,000

Mutual funds investment in intuitive surgical company-worthy $ 100,000

The reason for investing is that mutual funds are an excellent method to start building an investment portfolio. Mutual funds are both affordable and greatly diversify the risk for investors

Investment of ETN’S (Exchange Traded Notes) in Barclays bank worthy $ 100000

ETNs, or exchange-traded notes, are a sort of debt asset that Barclays Bank first introduced. They work similarly to exchange-traded funds in that they are traded on major stock exchanges. Stock ETNs such as TVIX and VIX are only two examples(Vinodkumar & Khalid AlJasser, 2020)

Blue chip stock Investment of $ 100000 in Google company

Blue-chip stocks include Apple, Google, Intel, Netflix, and Bank of America, to name a few. Once invested, they help to grow the account of the investor. Dividends compensate for the fact that the price of the stock has not increased considerably.

Amazon Profile, History, and What They Produce

Jeff Bezos created Amazon.com to sell books over the Internet. The website was launched in 1995 and immediately rose to the top of the Internet book-related sites. Amazon aims to provide the World with the Largest Selection and be the Most Customer-Centered Company, allowing customers to find and discover everything they wish to buy online. Amazon is an e-commerce platform, which connects buyers, merchants, and content creators. It sells items and material that has been purchased for resale from vendors as well as third-party sellers. Filmmakers, singers, app developers, authors, and others can use the website of the company, which is already branded, to publish and sell their work (Jackson & Orebaugh,2018).

Amazon financial information

Amazon experienced a 72% increase in the operating cash flow, equivalent to $ 66.1 billion in 2019 compared to the previous ending of December 31. The cash flow increased by $31 billion, a good profit margin (Al-Marzooqi & Nobanee 2020).In addition, based on the analysis, the payments of the principal are less than the cash flow and other financial obligations, a growth of approximately $ 20.3 billion compared to the previous year when $16.2 billion were earned.

In the previous year, free cash flow less the capital financing, repayment of principal, and all other financing obligations climbed to $21.4 billion, which was initially $12.5 billion for December 31, 2019.

By the end of the financial year 2020, common shares had increased up to 518 million, including shares underlying stock-based awards, up from 512 million a year before.

Reasons for choosing Amazon include the fact that it is the largest online store that is doing well economically, which is proved by Amazon’s financial information provided.

References

Al-Marzooqi, M. B., & Nobanee, H. (2020). Financial analysis of Amazon. SSRN Electronic Journal. Web.

Vinodkumar, N., & Khalid AlJasser, H. (2020). . Investment management and financial innovations, 17(2), 69–75. Web.

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