Question: People over the decades often wonder about how to successfully mange their investments. The purpose of this paper is to answer the question if it is better to purchase a stock that pays a dividend to their shareholders (value stocks) or buy a stock that pays no dividends and simply reinvests money back into the company (growth stock).

Our parameters are as follows:

? We take $1000 investment into each company to better see a profit or loss margin

? Use 1 year ago prices for use of the individual investors that are penetrating the market in 2007.

? Take 8-16-06 prices and compare them to 8-16-07 prices

? Take “like companies” within the same business identification class

? We have selected 4 technology companies (2 value & 2 growth)

? We have also selected 2 service companies (1 value & 1 growth)

Technology:

Value: 8-16-06 price Shares Dividends Value Today

MSFT $26.74 37.39716 .76 $1032.91

IBM $81.30 12.30012 2.4 $1330.38

Original Investment: $2000 Today’s value: $2330.38 Profit: $330.38

GOOG $285.65 3.500788 NO $1684.68

ORCL $13.30 75.18797 NO $1419.54

Original Investment: $2000 Today’s value: 3104.23 Profit: $1104.23

Services:

THI $24.81 40.30633 .314 $1289.96

Original Investment: $1000 Today’s value: $1289.96 Profit: $289.96

SBUX $30.64 32.63708 NO $857.70

Original Investment: $1000 Today’s value: $857.70 Loss: <-$142.30>

Null Hypothesis:

Ho: average loss/gain of value stock = Average loss/gain of Growth stock

H1: Average loss/gain of value stock <>Average loss/gain of Growth Stock