Journal Entry 1: Principal of Finance

Company Selection 

The companies selected to be traded in include Netflix Inc., Tesla Inc., and Alnylam Pharmaceutical, Inc. This portfolio is well diversified as it covers the industries such as TV, automobiles, and Healthcare. Netflix, Inc. is an Internet subscription service company that offers subscription service streaming movies and television episodes over the internet and delivering DVDs by mail. The segments where Netflix operates include domestic streaming, international streaming, and Domestic DVD. The domestic streaming segments acquire revenue from membership fee subscribed monthly for providing streamed content to individuals in the United States. The International streaming is comprised of subscriptions from individuals outside the U.S. The DVD segment serves the market by making deliveries of the DVD by mail. Netflix, Inc. operates in the sector of consumer services within the industry of Cable/Satellite TV. As of 23 July, the Netflix shares traded at $362.66, which was an increase of 0.45% more than the previous day (CNN Money, 2018).

Tesla, Inc. operates in the sector of consumer durables within the industry of motor vehicles. The company engages in the design, development, manufacture, and sale of fully electric vehicles, energy production, and storage systems. It also offers vehicle service centers, supercharger station, and self-driving capability. The company serves a segmented market comprised of automotive, energy generation, and storage segments. As at July 23, the company’s shares traded at $303.2, which was a 3.31 decrease from the previous day (CNN Money, 2018).

Alnylam Pharmaceutical, Inc is a biopharmaceutical company. The company is involved in the research, development, and commercialization of ribonucleic acid and interference therapeutics. The company’s products focus on three therapeutic areas namely genetic medicines, cardio-metabolic diseases, and hepatic infectious diseases (Reuters, 2018). As of 23 July, Alnylam Pharmaceuticals, Inc’s shares closed at $105.71, which was a decrease of 0.21% of the previous day’s price. 

References

CNN Money. (2018). Tesla, Inc. Retrieved from https://money.cnn.com/quote/profile/profile.html?symb=TSLA

CNN Money. (2018). Netflix Inc. Retrieved from https://money.cnn.com/quote/profile/profile.html?symb=NFLXReuters. (2018). Profile: Alnylam Pharmaceuticals Inc. Retrieved from https://www.reuters.com/finance/stocks/companyProfile/ALNY.O