Robby Ackles
Math III Honors
Mr. Dave Corner
Thursday, December 8, 2016
Ackles 2
The organization abandoned a crucial drug trial after the drug proved ineffective, which resulted
in investors taking their shares for current value to avoid further downfall. It does not get better
for Horizon, as the stock is projected to plunge for the next few months following the aftermath
of the drug failure.
Many investors have pointed to the stock of the Callon Petroleum Company (CPE) to
watch over the next month or so. The stock has increased by at least 50% of its value in late
October and early November, and long-term market charts see the stock continuing its fast pace
up the ranks of stocks worth investing in. With a current President-elect that has restated his
interest and trust in the oil industry, petroleum stocks should rise as a collective group.
Ackles 3
One calculation that is helpful for investors is that of accrued interest, which is the
amount of interest that a bond has accumulated over time since the initial investment (principal
investment). To calculate accrued interest, one must take the annual interest rate and divide it by
twelve to find the monthly interest rate, and then divide that value by 100 to receive a decimal.
Once the decimal is discovered, the next step is to find the average daily balance of the
investment, which can be found by multiplying the balance of the investment by the number of
days that the balance was in existence, and adding that value to the product of the balance plus
additional borrowings and the number of days left in the month from the amount of time that the
balance was present. This is all divided by the number of days in the respective month to find the
average daily basis. The average daily basis can now be multiplied by the monthly interest rate to
find the accrued interest rate.
There are a plethora of formulas and measures that circulate through the stock market
from one day to the next, and it is difficult for investors to put a finger on which ones are most
important. However, by staying active in the stock market and potentially meeting with a
stockbroker or investment advisor on occasion, the terms become more clear.