Week 8 - Assignment: Create a SWOT-Based Investment Checklist

For the average investor, it is difficult to predict with any accuracy when, or if, the stock market will crash or when to sell or buy stock. Many novice investors buy or sell stocks simply based on hunches, intuitions, recommendations from other investors, or isolated pieces of information from media outlets. Such limited evaluations can be dangerous for personal finances. However, there are tools available that make it possible to avoid costly losses that may lead to bankruptcy from poor decisions. One popular method involves conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of a stock investment’s risks and rewards. A SWOT analysis identifies questions designed to promote deeper, systematic thinking about the weaknesses of and threats to potential investments.

For this task, you will prepare an investment checklist to mitigate cognitive errors in judgments to make the decision to ‘buy or not buy’ stock. Begin by identifying one stock market category, such as technology, pharmaceuticals, agriculture, etc. Using the SWOT framework, prepare at least 5 questions under each analysis level that an average investor should ask in order to properly evaluate stock investment risks and rewards. Once you have completed your checklist, prepare a brief summary of how these questions would allow the average investor to avoid cognitive errors in judgment.

Support your checklist and summary analysis with at least three scholarly resources published in peer-reviewed journals during the past 7 years. In addition to these specified resources, other appropriate scholarly resources may be included.

Length: 1-2 page checklist; 1-2 page summary

Your checklist and summary should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to the topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral’s Academic Integrity Policy.