The Stock Market Essay

The Stock Market Essay
The Stock Market
The stock market plays a significant role in the health of the economy; the economy has to be strong for a country and its citizens to prosper. In 1929
over a period of two weeks 30 billion dollars disappeared from the U.S. economy, this was the event that started the greatest period of human hardship
of the twentieth century known as the great depression. On October 19,1987 the Dow Jones industrial average plunged almost a third of its value. Many
investors went completely bankrupt after one day of trading. Both of these crashes came without warning in booming markets are the currently
booming markets heading for a collapse? The current market resembles both 1929 and1987 markets but there is a smaller possibility...show more
content...
Computer programs that would automatically sell stocks if they fell below a certain price caused the big losses in 87; circuit breakers have since
been installed to stop the surge of computer trading. The Dow Jones industrial average set a record one gain of 102.27 the day after the crash and
within 15 months the market gained back all it had lost. 1987 was a minor compared to what the 1929 crash did to the welfare of the average individual.
The 20's believe it or not had more in common with the present day than most would think the economy was doing well and confidant economists
ensured investors that stocks were the best investment for the long term and were generally risk free. Technology stocks such as those of RCA fueled
the market. RCA exerted a remarkable hold over a revolutionary form of mass communication–radio. The company's top executive David Sarnoff was
the Bill Gates of his day, between 1923 and1929 RCAstock rose from $5 to over $500 a share. News of amazing profits like these motivated
individuals to loan money to buy stock, investors took advantage of loose margin rules, borrowing nearly 90% of the money they needed to buy the
stock. What caused the crash in 29? There are many contributing factors, stocks were over priced, Fraud and insider trading, poor federal reserve
policy and margin buying are all to blame for the October 29th nose dive. In the first few hours of October 29th stock
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Notes On The Stock Market
Rookie stock market investors are those who only possess a relatively rudimentary knowledge and experience of the investing sphere. Most of these
individuals usually commence by sticking to a 'buy and hold ' trading strategy. As a beginner, your general experience in investment trading is very
limited. This, for the most part, confines you to making no more than a couple of trades perhaps on a monthly basis from a cash account. However,
this does not necessary signify that you have not placed high expectations on your stock market trading activities. You most likely are very interested
in expanding your knowledge as well as investment experience in order to realize the objectives you may have set. This is all nice and good.
Nevertheless,...show more content...
Beginners are normally successful during strong 'bull ' markets. But unfortunately find themselves clueless when on tougher occasions, especially
when market volatility is higher and 'bears ' happen to rule. Well, if you deeply feel you fit this description to the T, here then are some stock market
basics for beginners, which could be useful.
Make it a point to set realistic trading objectives
Before you decide to make your very first investment, try to ask yourself the following questions. "At what point will you require the money you
have invested?" "Will it be after 6 months, a year, 5 years or perhaps much longer?", "Are you trying to lay a nest egg for your sunset years?", "Are
seeking to obtain the necessary funds to finance your college education or perhaps seeking money to buy a home?" "On the other hand, do wish to
establish an estate that you want to leave for your beneficiaries upon your demise?"
Whichever the case, prior to making any stock market investment, you ought to fully determine your primary driving motivation. When you have
ascertained this critical point, next consider the most likely time in the future you might stand in need of the funds you wish to invest. Should you
require your investment back within just a couple of years, then it will be much better to consider another investment channel. It is very important for
you to fully understand that the stock market with its volatility can

Why Is The Stock Market? Essay
Stock Markets have always been a topic that really created an interest in my head. I think that is a completely different world, where money is
moved in huge quantities and where one, by being smart can make a lot of money. This is the idea I have in my head by what I have experienced for
the moment, mostly because of watching how one of my best friends is really into stock markets, and he is always trading and investing to win
money. That is why once I had the chance of writing this paper and chose a topic that really attracted my attention, the first thing that pops in my
mind was Stock Markets. So because I am just a beginner and I really do not know about this world I decided to start by researching what is the stock
market, what is composed of, what are shares, how are those created and what is the best way to start in this new world as a beginner, and what are
some tips that would really help a person be successful while moving around the stock market.
The stock market After some time researching I found a really well explained definition that says, "The stock market is the market in which shares of
publicly held companies are issued and traded either through exchanges or over–the–counter markets Also known as the equity market the stock market
is one of the most vital components of a free–market economy, as it provides companies with access to capital in exchange for giving investors a slice
of ownership in the company. The stock market makes it possible to grow

Stock Market Essay
How Stock Market Works According to Market News
Contingent upon the market news, the investors around the world market are always wanting to convert their hard–earned money into a quantity that
can secure their life in a long time in the shortest possible time. Hardly any investment options can provide the result an investor seeks. Contingent
upon the Dubai financial market news, the CURRENCY MARKETS is one of your options where it's possible. The king of all investment options
according to the UAE stock market news where you'll be able to earn a lot of money overnight is CURRENCY MARKETS. Most of the investor is
convinced that stock market trading according to market news provides them with the opportunity of the utmost gains in the...show more content...
It appears a hard question, but has a straightforward answer and can be grasped with no bafflement while comparing with the Dubai stock market news.
Companies are always getting excited about increasing their capital for development purposes to obtain additional profit, requiring the market news
knowledge, for the business. They get the knowledge of the market news and target modest investors with the objective and the best location to see
them is the stock market. To publicize themselves, companies give a portion (of the entire talk about of the matter) to the general public through the
world stock markets.
CURRENCY MARKETS for Investors
For traders, stock market and its own day trading will be the medium from where they anticipate have deals according to UAE market news, i.e. buy
or sell according to the market news, in the stocks and share the market news that they feel safe with. The procedure of shopping for or selling off any
stock according to the market news may be accomplished in real–time day trading, online stock market, etc.
By understanding the role of the stock market and the market news in securities and a stock investor, it is straightforward to understand the essential
working that is involved with the stock market. However, a buyer who looks forwards for extracting maximum attempts to gather increasingly more
knowledgeable about the market news and stocks. To

Essay On The Role Of Stock Markets
The Role of Stock Markets According to Alfaro, Chanda, Kalemli–Ozcan, & Sayek (2004) stock markets play a vital role as they allow investors to buy
and sell shares in publicly traded companies. They are one of the most vital areas of a market economy as they provide companies with access to
capital and investors with a slice of ownership in the company and the potential of gains based on the company 's future performance. Stock markets
generally reflect the economic conditions of an economy, Alfaro, Chanda, Kalemli–Ozcan, & Sayek (2004). If an economy is growing then output will
be increasing and most firms should be experiencing increased profitability. This higher profit makes the company shares more attractive– because
they can give bigger dividends to shareholders. If the economy is forecast to enter into a recession, then stock markets will generally fall. This is
because a recession means lower profits, less dividends and even the prospect of firms going bankrupt, which would be bad news for shareholders. The
Role of Over–the–counter Markets According to Duffie, GГўrleanu, & Pedersen (2005) over–the–counter (OTC) markets serve as a type of secondary
market also referred to as a dealer market (The secondary market is where investors purchase securities or assets from other investors, rather than from
issuing companies themselves). This generally means that the stock are traded either on the over–the–counter bulletin board (OTCBB) or the pink
sheets .The

Essay On Stock Market
Many traders exclusively focus on dealing with penny stocks when investing the stock market because of the obvious greater volatility and profit
potential behind them. With this increase profit potential, there is the increased likelihood of risk, as well, because cheap stocks can just as easily
drop in value in a short span of time as they can appreciate. This is why it's essential to be able to differentiate between well performing and poorly
performing stocks so that you can obviously focus on the good.
This article is going to talk about the most reliable way to do just when investing the stock market and differentiate between the good and the bad cheap
stocks.
Analytical stock pickers are getting more effective each and every day...show more content...
Investing in stock is an art which you need to master if you need to be successful. When you decide to invest in stock these are some of the things that
you should consider.
– Invest in companies that are worth more than their market value
– Consider the profitability levels of the company this can be done by assessing the return on equity, the return on Invested capital and the company's
profit margin. The return on equity is the rate at which shareholders earn from their shares. One when investing in stock markets you should invest in
companies which have a return on equity in excess of 15%. The return on equity is calculated by dividing the company's Net income by shareholders
equity. The company's net incomes over net sales should also be considered because sales determine the profit margin of the company.
– Avoid companies with bigdebt ratios even if their return on investment is high. This can be assessed by diving the company's total liabilities by the
shareholder's equity.
– Understand the business your joining very well, avoid investing in companies and businesses you're not well versed with. A good knowledge of
business helps you to participate in its growth and development. In the business you understand very well you're able to analyze the market and also
assess the complicated markets.

– Invest in business with long term shares. Investing in shares in companies with strong long term hold will help you to be

Stock Market Essay
Stock Market For Beginners: A Short Guide To Learning Stock Market Basics So you're interested in learning about the stock market. Although
very intricate, learning about the stock market is not as hard as it seems. While there is a lot more to learn, this short guide will help to get you
started. So let's get into some basics of the stock market, and how it works. So what exactly are stocks? In order to have an understanding of what
the stock market is you have to have an understanding of what it's built around, which are stocks. A stock also known as a share, is basically a small
portion of a company. So if you purchase a stock and become a shareholder, you essentially own a piece of that company. Because of this, you also have
...show more content...
The demand for stock mainly depends on how confident investors are in the direction the market will go. If they feel positively that a company
will increase in profits, they will then make a bid or an offer on the price. Other factors also come into play such as what's called a Price to
Earnings Ratio and growth rates, which is how much investors expect a company's revenue will grow. Mainly if investors see the company has lots
of potential and are beyond confident in the company's future financial growth(after careful evaluation of course), then they will go ahead and make
a bid. In the end, they receive dividends from a company's profits. Deciding which stocks you should invest in It's vital that you understand and
recognize which stocks you should invest your money in. You don't ever want to invest without taking a proper look at the company and their history.
It's important to make sure you're at least familiar with the company so you have an idea of their services, how long they have been in business, and
more importantly their trajectory. However, there are quite a few things to keep in mind when considering stocks: Don't get hung up on high/low costs
of stock This means keep an open, and analytic mind when buying a stock. A stock that's cheap now doesn't necessarily mean it will have success later
on. A cheap stock could potentially mean that particular company is actually losing its momentum and business is at a low. The

Playing the Stock Market Game Essay
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different
than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is
to invest in bonds first, then mutual funds.
My savings strategy selection process for an immediate want includes taking a portion of my income and storing it in a money market bank account to
cover the expenses, since the interest rate changes daily for money market accounts. My savings strategy selection process for retirement includes a
combination of municipal bonds, mutual funds, and maybe a few reliable stocks. However, I would invest...show more content...
In return for that money, the issuer provides you with a bond in which it promises to pay a certain rate of interest during the life of the bond, and to
repay the face value of the bond (the principle) at its maturity date. Among the types of bonds available for investment are: U.S. government securities,
municipal bonds, corporate bonds, mortgage– and asset–backed securities, federal agency securities and foreign government bonds. Zero–interest or
coupon municipal bonds are my number one choice because these bonds can be purchased for a small amount, then at its maturity date, or earlier call
date these bonds usually pay the face value. Now to me, this is a smart investment choice especially for retirement.
A mutual fund is nothing more than a collection of stocks and/or bonds. One can
think of a mutual fund as a company that brings together a group of people and invests
their money in stocks, bonds, and other securities. Each investor owns shares, which
represent a portion of the holdings of the fund. By nature I am not a gambler, so when investing my money, I want less risks as possible. So let it be
known that bonds and mutual funds are safer and have less risk than stocks. This does not mean that some stocks are not good sound investment choices.
The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains

Essay investing in the stock market
2013
Mr. Acker
For the month of December, I was given an assignment consisting of $100,000 and four stocks to invest in. My four stocks were The Ralph Lauren
Corp., Visa Inc., Master card Inc. and The Chevron Corp. As stated I was given a month to record my data and I ended up with a total capital gain
of $5,518.36 for the one month period for my investments. I have to thank you Mr. Acker, this project was not difficult, but it did confuse me.
Receiving this assignment scared me in a way, because I didn't know what I was getting into. The finance world is scary and tricky, one minute the
market is doing good and other days it would be low. While calculating my capital gains or losses I thought I would lose a larger...show more content...
It also offers a range of payments platforms that enable credit, debit, prepaid, and cash access programs, as well as digital, mobile, and eCommerce
payments for individuals, businesses and government entities. Visa Inc. is headquartered in San Francisco, California. The beginningstock price was
$148.47 per shares purchased and closed at $148.65 with a gain of $11.57.
3. My third company I chose to invest $40,000 into was Mastercard Inc. Mastercard's incorporation is exchanged by NYSE. MasterCard Incorporated, a
payments and technology company, together with its subsidiaries, provides transaction processing and other payment–related services in the United
States and internationally. Its payment solutions include payment programs, product development, payment processing technology, payment security,
consulting, and information services and marketing. The company provides transaction processing services comprising transaction switching, which
include authorization, clearing, and settlement; connectivity services, such as network access, equipment, and the transmission of authorization and
settlement messages; and other payment–related services, including products used to prevent or detect fraudulent transactions, cardholder services,
professional consulting and research services, compliance and penalty, account and transaction enhancement services, holograms, and

The Stock Market Essay

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