Research Paper on:
Amazon.com and Investment Selection

Unformatted Sample Text from the Research Paper:
factors, for example the risk profile of the investor, the current behaviour of the market place and the perspective of the investor and the way that they believe the market  will perform in the future. If looking to invest in a sector that the investor believes will increase in value it may also be wise to spread the risk around  a few companies within that sector. This spreads the risk, but may also dilute potentially large gains from a single company. If we are considering in investing in Internet companies  then we may look to the recent events in order to consider the way in which these have influenced performance and the way they may influence future performance.  Therefore before we look to the actual investment decision we need to consider the background against which it is made. In recent times there  has been fear about the American economy overheating, that is the government and the Federal Reserve have been concerned that the economy has been growing at a rate where  it will start to grow to fast and be unable to support itself resulting in high inflation and a possible recession if not prevented, and it against this environment that  we saw a crash in the high tech stock in spring of 2000 where many companies that were not the traditional manufacturing or service industries suffered, most notably where those  companies on the NASDAQ where value tumbles. If we consider that the art of investment and making capital grow we can see that the secret is to invest whist the  stocks are low and then sell when the stocks are high, rather than try to follow the trends which may mean buying or selling at less advantageous prices. For this