Unpredictable Stock Market

Unpredictable Stock Market
Even though we made profits in the last week of our trading game, we were still unable to
compensate for our total losses incurred. Previously, we had the mind–set that the stock market was
far simpler; people buy shares in the hopes of making money. Some people buy and sell often for
speculation purposes, while others are long term investors. Sometimes people make a lot of money
very quickly, and sometimes people lose a great deal just as fast.
However, this project has definitely changed our views on the stock market. This game had
illuminated the true complexities, and unpredictability of the market, concurrently helping us to
understand how it all works. Participating in this game showed us how unpredictable the market
was, and it was
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Stock Market
Abstract
This project documents and describes the buying and selling of stocks that we purchased using $
100,000 USD (Monopoly money) given to us by our instructor. Our assignment was to invest the
stock in any way seen best fit to gain the most profit. We were to track our stocks three times a week
and document the results using Microsoft Excel. The requirements for the assignment were to
include two stock trades and to try to make our portfolio diverse using different sectors. The purpose
of this project is to understand how the stock market works, and give us a better understanding of
how the stock market operates.
As a beginning investor, I tried to keep my initial stocks as an even investment for the most part. I ...
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I purchased 212 shares of Starbucks (SBUX) at $ 51.17 per share, for a total of $ 10,848.04. I
decided on Starbucks because I consider this company to have high end products with larger profits
due to the markup. This company seems to be moving along very well with technology adopting
new marketing techniques like advertising heavily on social networks.
My last purchase was State Street (STT), not only is the company that I work for, but in the near
future I know that they will offer to pay my year end bonus with their stock instead of cash. I
purchased 300 shares of stock at $ 43.00 per share, for a total of $ 12,900.00. With over $ 8.7
Trillion in middle–office assets under administration, State Street is a recognized leader in providing
investment operations.
Performance
Up until October 19th, 2012, before I decided to adjust my portfolio each of my five stocks yielded
a gain for my portfolio and my profit margin was 1.22%. On the same day, October 19th, 2012, I
adjusted my portfolio. I decided to sell off all of my Apple stock (APPL); I sold all 60 shares at
$609.84, which generated a loss of $4,236.00. I decided to sell because the price decreased more
than $ 92 dollars in just 1 month and my theory of new product fever didn't prove true. I wasn't
comfortable keeping this high priced stock with the price as high as 700 in the middle of September,
and

Stock Market Crash of 1929
The Stock Market Crash of 1929 was the most devastating crash in U.S. history. It started on
October 24, 1929 and the downfall ended in July 1932. I always wondered what caused this
calamity. Before starting this report, I knew basic idea about the crash. It was a time of decline and
huge fortunes were lost. Now I can figure out just why.
The research process for my report was no easy task. The simple part was choosing my topic. As
soon as I saw "Crash of 1929" on the topic list, I had my mind fixed on it. After selecting that topic,
I did a couple days of basic research and got a feel for it. The harder part was choosing a question to
base my report on. The first question that came to my mind was 'How did the 1929 crash affect the
U.S. ... Show more content on Helpwriting.net ...
The following three paragraphs will discuss the reasons why the Crash occurred and possible
prevention methods. One reason the stock market crashed was margin buying. When you buy a
stock on margin, it means that you buy a stock on credit and a promise with your broker that you
will pay off the loan later. This method will increase your earnings if the stock's value rises thus
making it very popular. On the other hand, if the stock's value falls, you will lose even more money.
This is why margin buying is very risky especially at the high rates. When the Stock Market fell,
many people went broke. Male investors jumped off the top of buildings because they were in such
a bad financial situation. According to the Financial Times, the President of the American Bankers
Association said "Bankers are gravely alarmed over the mounting volume of credit being employed
in carrying security loans, both by brokers and by people." The bankers should have lowered the
rates to reduce the negative effects of margin buying. The average rate before October 1929 was
50% – 75%. Had it been lowered to 10 percent, the crash would have been shortened to a couple of
months.
Another big problem that led to the Stock Market Crash was public misconception. The general
conception was that the stock market was an easy way to make money. People began believing that
stock prices would go up forever. As a result, many people bought publicized stocks

Technology And The Stock Market Essay
The purpose of this research paper is to prove that technology has been good for the stock market.
Thanks to technology, there are now more traders than ever because of the ease of trading online
with firms such as Auditrade and Ameritrade. There are also more stocks that are doing well because
they are in the technology field. The New York Stock Exchange and NASDAQ have both benefitted
from the recent technological movement.
The NYSE says they "are dedicated to maintaining the most efficient and technologically advanced
marketplace in the world." The key to that leadership has been the state–of–the–art technology and
systems development. Technology serves to support and enhance the human judgement at ... Show
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They have a comprehensive order–management system, that systematizes and tracks all outstanding
orders.
Technology gives a market's member organizations flexibility in determining how to staff their
trading floor operations as well as flexiblity in using that market's provided systems, networks and
terminals or interfacing their own technology. They are given assurance that their market will have
the systems capacity and trading floor operations to handle daily trading and in billions of shares.
Member organizations get faster order handling and associated reports to their customers, along with
speedier and enhanced market information. They also have a regulatory environment, which assures
member organiztions that their customers, large and small, can trade with confidence. Technology
also allows lower costs, despite increasing volumes and enhanced products.
Companies listed on the NYSE are provided with an electronic link so they may analyze daily
trading in their stock, and compare market performance during various time periods. The technology
also supports the visibility of operations and information, and regulated auction–market procedures,
which listed companies expect from their "primary" market in support of their capital–raising
activities and their shareholder services.

Stock Market
MBA 513– Enron's Demise– Were there warning signs?
Enron's stock price traded around $62.72 per share at the end of April 2001. Do you think Enron
was worth that much? Why or why not?,
answer:
In order value stocks one has to understand the possible future earnings of the company represented
as earning per share. Since Enron has not quality financial representations, those figures are not easy
to identify.
Relying on big financial intuitions' data we may come up with a stock value which would be a
conservative one and compare it with the actual stock value of $62.72 per share.
For calculating stock value one has to find out all possible future earnings of the company. As the
second step all the future earnings should be ... Show more content on Helpwriting.net ...
| 29,40 | 0,21 | –9,19 | –9,80 | –10,50 | –11,31 | –12,25 | –13,36 | –24,50 | –147,00 | 36,75 | 0,22 | –
8,65 | –9,19 | –9,80 | –10,50 | –11,31 | –12,25 | –21,00 | –73,50 | 49,00 | 0,23 | –8,17 | –8,65 | –9,19 | –
9,80 | –10,50 | –11,31 | –18,38 | –49,00 | 73,50 | 0,24 | –7,74 | –8,17 | –8,65 | –9,19 | –9,80 | –10,50 | –
16,33 | –36,75 | 147,00 |
To sum up, there has to physiological effects for the analysts who value company at unrealistically.
Earnings per share value lacks the debts that should be coming from special purpose entities.
Therefore acquiring profits but eliminating debts did cause unexplained growth data for the

Commodities And The Stock Market
When comes to commodities and the stock market, investors are quick to blame oil prices for
causing market volatility. Granted this is case more often than not, other commodities such as corn
and gold have a tremendous impact on daily stock prices. Global commodities are typically broken
down into 4 basic headers; energy, metals, agriculture, meat & livestock, and consumer. Energy, as
we know, watch the most heavily scrutinized assets including oil and natural gases. Metals, on the
other hand, track our most precious assets, gold and silver. While agriculture, meat & livestock and
consumer observe corn, coffee and live cattle to name a few. Since commodities, and not just oil, are
key inputs of many goods, they have a profound impact on ... Show more content on
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Obviously when oil prices are volatile, earnings from company's like Exxon Mobil will fluctuate.
Investors are quick to take notice of this, causing share prices of energy companies to fall. However,
what you may not be aware of is that oil is a key input into a variety of goods and products we use
daily. Retail manufactures often use oil to make plastics or fertilizers found at your local Walmart.
By extension, when the price of oil rises, major retailers pass on rising costs onto consumers in the
form of higher prices. If they aren't able to pass along the cost increase, then retailers face an
adverse impact on margins, subsequently hurting stock prices. Moreover, oil prices have a directly
effect what you end up paying at theh pump. When oils prices are high, consumer spending typically
suffers since consumers must dig deeper to on necessities and fuel. Auto manufactures often feel this
effect through falling sales of its higher margin SUVs and trucks.
Gold
Unlike oil, gold prices indirectly follows movements in the market. Throughout history gold has
been viewed as a counter cyclical asset, which means the precious metals gains value during market
down turns. Since gold is found all over the world and holds high intrinsic value, it is often viewed
as a universal currency. When the outlook of the equity markets looks bleak or corporate earnings
are destined for doom, investors will flock to the precious

Stock Market
In the modern time, the competitive business world seems to be more serious than previously. The
main aim of business strategy is creating the benefit in trade and also reducing some of its
limitations. Furthermore, another strategy that is applied to the modern business world is to link the
economic globalization such as in order to become a listed company on the stock market. We can
see lots of advantages by listed companies compared to private companies such as financial stability
or are more opportunities to do business. It is an absolutely interesting that the top biggest
companies in the world, (by top 100 companies) are all listed on the Stock Market, such as Wal–
mart stores the biggest companies by 2010 (Fortune global 500, 2010) ... Show more content on
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In addition, other points that were attracting foreign partners and also opening opportunities for
business development and modernisation, because the trend of a globalised economy is having
strong, complementary, strategic businesses ally this adds to a firm's competitiveness, described by
(Pagano,Randl and Ailsa, 2001).
Moreover, that it enhances the brand name, adds value to the company and also make more
opportunity to make the firm a global brand with well known companies and also business.
Furthermore, the listing companies have more opportunity to greatly increase a capital investment,
also a higher standard of accounting and audit of relevant agencies then the public relations is
another way to build confidence on the company's as well (Pagano,Randl and Ailsa, 2001).
On the other hand, (The Stock Exchange Market of Thailand, 2008), it described the benefit that
impact to shareholders, because listed company has under the rules and regulations governing
securities trading and also guarantee that investors or shareholders have equal access to the
information. Moreover, investors can find a potential buyer more easily because their stocks are
more marketable. Furthermore, holding shares that can be exchanged for cash in a short time
became one of the choices to invest their money.
The Best Way to Build a Modern Business?
How to

A Note On The Stock Market
Introduction The stock market has seen a lot of fluctuation during the months of February, March,
and beginning of April. This can be noted to the new President in office, Mr. Trump. He has spent a
great amount of his life as a businessman, and many investors saw this as a positive omen as to what
would happen to the stock market and their investments. In fact, right before the presidential
election in November, stock prices and indexes plunged as uncertainty in whether he or Mrs. Clinton
would take office in such a close presidential race. After the announcement that there was a
projected win for Mr. Trump, these stock prices and indexes that recently plummeted, increase
rapidly; even to a price higher than before the uncertainty of the ... Show more content on
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He signed executive orders that limited new regulations and was calling for review of Dodd–Frank
regulation of financial firms. Companies that benefitted most from these deregulations contributed
to most of the growth. The first quarterly earnings after the election showed growth and many
companies plan to spend money on new equipment and hiring. Companies setting out to hire more
employees lowered the employment rate, which continue the stock market growth. The hallmark of
stock indexes increasing was on Thursday, March 2nd when the DIJA surged over 300 points. The
S&P 500 rose 32.32 points and the Nasdaq rose 78.59 points as well. Investors showed optimism in
the President to deregulate more and passing tax policies that are better for corporations, as well as
hopes that the federal reserve will increase interest rates. The rise came after President Trump spoke
to Congress with an optimistic tone; however, he offered few details for his plans. These events also
caused a rise in the treasury interest rates on ten–year treasury notes, causing bank stocks like J.P.
Morgan Chase and Bank of America to increase in price as well. The promising of the Trump's
presidency has many investors optimistic, but slightly concerned by the high surge. Following the
surge in stock indexes, the Federal Reserve raised interest rates. Before they official rose rates, there
were many statements from officials about a strong possibility that interest rates would rise. This

Stock Market Predictability Essay
I will now examine the effectiveness of the Book to Market ratio in predicting stock market returns.
The Book to Market ratio is used to compare the book value and the market value of the firm. The
book value is calculated by the firm's accounting worth. The market value is determined by the
market capitalization in the stock market. It is then found using the formula, Book Value of the firm
/ Market Value of the firm. Its purpose is to identify any securities that may be undervalued or
overvalued. From the research of Fama and French (1992), we can see the cross sectional variation
in stock returns can be shown by the book to market ratio of individual stocks. In Pontiff (1998),
there were two measures of the book to market ratio that ... Show more content on Helpwriting.net
...
However, in the paper's findings, the book to market ratio's predictive power is more prominent
before 1960 as there is no significant relation after 1960. The paper also concludes that "after 1960,
the S&P book to market ratio is a better predictor of market returns than is the DJIA book to market
ratio and the S&P book value is better than the DJIA book value in predicting market cash flow".
Therefore, the book to market ratio is a good predictor for future market returns as long as we have a
measure of book value that has high correlation with future cash flows.
Some financial experts argue that certain macroeconomic variables can be used for predicting stock
returns. One such macroeconomic variable is the Consumption to Wealth ratio. I will now examine
how effective this variable is in predicting future stock market returns. The expected excess returns
vary with the growths and dips in the business cycle, therefore, they should be predictable at
different stages of the cycle. To examine the relationship, we note that aggregate consumption, asset
holdings and labour income all share the same long term trend, but in the short term they may
deviate substantially from one another. According to Lettau Ludvigson 2001, "we study the role of
these transitory deviations from the common trend in

Stock Market Disadvantages
The stock market is a very commonplace for people to invest their money to, the question is should
it be in the stock market or the real estate business.
Stocks
The stock market is a very good way to invest your money. The stock market is easier to diversify
with your money, which gives you a better chance of choosing a company that will do well. In long–
term use, your stock portfolio can be used as tax–free retirement funds and can help to build your
Net worth. Some companies grow from 20%–50% in a year which could make your investment well
worth the money you spent on it. With some companies offering dividends to their stockholders, you
can take the money and directly reinvest it into buying more stocks, which will increase your overall
Net worth also. On top of the relatively low price of stocks, the fees you pay when you buy and sell
the stocks are also at a relatively low percentage, usually about 1%. You also never have to go into
work or manage them at all because the businesses all already have the necessary employees.
Where stocks are a good thing to invest in there are also some negatives to investing in the market.
A big downside is that the value of the stocks is based solely on the company, and you can't really
do much to improve the stock value. Another problem is how the stock value changes so
dramatically at times. A stock can go from doing very well to doing the worst it's ever been
overnight, but it can also go the opposite way. The biggest problem with that is it is emotionally
taxing to the people who worry about it and think about it constantly. Often investors lose money on
stocks due to the physiological problems that come up with owning a
stock, and with that you not only have to be mentally solid, but you have to be mentally strong. It
takes a lot of discipline to make money on stocks. You have to have trust in the company, in their
managers, their employees, and the auditors. Taking out a loan to buy stocks is also a very risky
thing to do because if the value of the stocks drop and you don't have enough money to make a
payment on the loan you could be forced to buy back a stock at a loss. The taxes on dividends is also
high, about 15%–20%.
Real Estate
Real estate is a good way to

Stocks On The Stock Market
There are thousands of stocks on the stock market. It can be a daunting task deciding which stocks
to invest in. Typically stocks are broken into two general categories: growth stocks and value stocks.
Growth stocks are typically considered companies that are expected to increase at rates above the
average rate of the market. These investments typically do not pay any form of dividends, preferring
to reinvest their earnings back into projects with the hope of helping the company to develop and
expand even further. Growth stocks do not immediately produce results; most of the value is derived
from the future earnings. In essence, you are investing in what the company will become instead of
what the company is now. Value stocks are companies that are or close to full maturity. There is not
a lot of room for growth with this stocks. Because of this, these stocks usually pay out dividends to
make their investors happy. In essence, you are investing in what the company is now and what it
will be in the future. The tendency for most new investors is to go for the growth stocks, because
they seem attractive and provide the most potential for returns. These are the stocks that can soar up
100% in a year. While exciting, these stocks are also the ones that can plunge very quickly and
cause panic in the market. So what should you be doing? Look for undervalue stocks. Investing in
undervalue stocks is the ticket to make great returns year after year. Investing in undervalue

Stock Market and Prospectus
Chapter 5
PROSPECTUS
DEFINITION [SECTION 2(36)]
Any document inviting deposits from the public for the subscription or purchase of any securities of
a body corporate. Following types of documents are prospectus: – ❑ Any document described or
issued as prospectus; including ❑ any notice, ❑ circular, ❑ advertisement or ❑ other document
Ingredient to constitute a "prospectus" i) There must be an "invitation to the public"; ii) The
invitation must be made by or on behalf of the company or in relation to an intended company; iii)
The invitation must be "to subscribe or purchase " iv) The invitation must relate to securities or such
other instrument. Invitation to ... Show more content on Helpwriting.net ...
It must be noted that by virtue of powers under the SEBI Act 1992, every company making a public
issue has also to get the Prospectus approval/vetted and obtain in–principal approval of the Central
Listing Authority and subsequently obtain approval of the Stock Exchange where at the securities
are proposed to be listed. Section 56 mandates that every prospectus shall be as per Schedule II: – ❑
Part I of Schedule II – the matters specified in and ❑ Part II of Schedule II – the reports therein ❑
Part III of Schedule III – provisions effecting Part I and Part II SEBI (DIP) Guidelines 2000 also
contains provisions, which shall have to be complied with by every company making a public issue.
The accountability and responsibility of the Abridged Prospectus is with the SEBI Registered
Category I Merchant Banker. Statements in prospectus should be true, accurate and fair. The Act as
well as the SEBI Act 1992 prescribes stringent penal actions on untrue or misrepresentation in the
prospectus. The salient features of such requirements are given below: –
|Companies Act 1956 |SEBI (DIP) Guidelines 2000 |
|Cover

Summary: The Stock Market Game
In the big picture, the stock market is not a game. People both have made millions and lost
everything on the stock market. Given this The Stock Market Game is a great simulation to a get a
slight feel on how the stock market works. This game can be be something very useful for you if this
is a topic the intess you. Depending on how much work you put into your stocks is what determines
what your going to get out of this. After completing this simulation I can see that there's definitely
potential to learn something for the future; you can use this opportunity, with this simulation, to
acquire information that could make your money later in life. To truly accomplish this your will
need to put in more work than is required for the class. In class

Risk Analysis of Stock Market
INTRODUCTION
Our assignment topic is "Risk analysis of Stock Market". To identify the stock market risk we have
to do some calculation. In this assignment we choose Coefficient of varience(CV) method We select
five banks (Dhaka Bank Ltd., Prime Bank Ltd., Social Islami Bank Ltd., Sahjalal Bank Ltd. and
Premium Bank Ltd. ) of financial institution. 1.1 History of the Stock Market of Bangladesh
Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is
located in Motijheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock
exchange is the first stock exchange of the country. As of 18 August 2010, the Dhaka Stock
Exchange had over 750 listed companies with a combined market ... Show more content on
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Step 2: To calculate the average price or mean value of each bank. Step 3: To calculate a value
which comes from X–mean.
Step 4: To calculate the square value of X–mean.
Step 5: To divide the value (X–mean)^2 by (n–1)
Step 6: To find out the Root value of [{(X–mean)^2}/(n–1)] This is the value of Standard Deviation
(Std.)
Step 7:To calculate the ratio between std. and mean. This is the value of CV.
Dhaka Bank: Month | Share price(TK) | _X – X | _(X – X)^2 | MAR'11 | 41.3 | –1.35 | 1.8225 |
APR'11 | 39.1 | –3.55 | 12.6025 | MAY'11 | 41.4 | –1.25 | 1.5625 | JUNE'11 | 44.7 | 2.05 | 4.2025 |
JULY'11 | 46.9 | 4.25 | 18.0625 | AUG'11 | 44.5 | 1.85 | 3.4225 | SEP'11 | 41.7 | –0.95 | 0.9025 |
OCT'11 | 42.3 | –0.35 | 0.1225 | NOV'11 | 44.4 | 1.75 | 3.0625 | DEC'11 | 44.5 | 1.85 | 3.4225 | JAN'12
| 37.1 | –5.55 | 30.8025 | FEB'12 | 43.9 | 1.25 | 1.5625 | TotalMean Std.CV

The Stock Market
In 2001, it struck everybody as odd when a blue chip stock went bankrupt less than a year after it
paid its top 5 executives a total of $282.7 million. The stock market is notorious for being
seductively tricky; being the sole contributor to the making and breaking of many men. However,
this time it was clear that this wasn't an ordinary unexpected decline. Enron Corporation, a former
American energy company, had to have had something going on behind the scenes to cause the
largest chapter 11 bankruptcy of its time. As the house of cards collapsed, it became clear that
investors were blindsided by one of the largest instances of pump and dump stock fraud the market
had ever seen. While it may be an enigma to many, the stock market does have some simple ground
rules that hold true almost all the time, no matter what stock one plans on investing in. The
backbone of the stock market is generally coined "buy low, sell high." This term is short and sweet,
but it encompasses all that is required to make money in the stock market. To make money, all
somebody has to do is buy shares of a stock when the price is low and undervalued, and then sell
those shares when the price goes up. Ignoring brokerage fees and federal taxes, this is essentially all
one has to do to make a profit; rinse and repeat. This same rule works in reverse if someone is trying
to avoid losing money on an investment. If shares of an overvalued stock are owned and the price is
expected to decline, one would

Strategies For Stock Markets : The Stock Market, The Aapl...
This paper tends to evaluate the various strategies used in stock markets by different companies in
order to regain market strength and to secure more4 reliable returns to the companies. This paper
highlights about two major companies in the stock market, the AAPL and GOOGL company. The
two companies use the same strategies in the operations of their stick markets and hence they can be
easily analyzed together and compared in regard to their mode of operation and their success.
In this paper, I chose to use the investing strategy rather than the trading strategy. The trading
strategy is very common in most stock markets as well as the global stock market,. The strategy
involves the buying and selling of shares in the stock market. However, ... Show more content on
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The most basic rule of the investing strategy is buying of shares. In order for the two companies to
start holding the shares, they must purchase the shares from the stock market to act as capital.
Before the two companies tart holding their shares for returns, GOOGL buys 14 shares for $ 674.40
while the AAPL Company buys 100 shares for $ 116. 53. Buying the shares gives the two
companies an open way to get initial returns on which they would hold for more returns. Another
rule that determines the investing strategy is the amount of time that it takes for the companies to
determine terminal returns. Normally, it takes a long period in order for the companies to account
for the returns gained from holding the initial shares. If the two companies are properly analyzed, it
is clear that the current returns at which the current stock shares are trending are higher than the
initial cost of the shares. According to the current rate of the shares in the stock market, it implies
that both companies have been holding the shares for a long time before they accumulated into such
a huge chunk of returns. According to the current reflection of the AAPL company, it is clear that the
current returns for the company is $ 11 611.00. This is a relatively higher amount of returns gathered
for the company regarding the current rate of $116.11. It reflects that the company has gained the
returns over a long period. Similarly, GOOGL reflects returns of $ 10 713.50 which is also a high
value

Essay On The Stock Market Crash
The stock market crash was a leading cause in the great depression and negatively impacted the US
by increasing poverty, making it harder to live, and it also changed economics and the world today. I
will explain the reasons behind the crash and its effects on life in America.
The stock market, in this case the New York Stock Exchange (NYSE), is a place where people can
go to buy, sell, or trade stock, or shares, of companies. The NYSE, which was officially founded in
1817, was bustling with people and investors in the 1920s. Everyone thought that the stock market
was just an easy way to get rich. People thought that profit was certain, but it wasn't. In 1929 the
NYSE had reached its peak, as almost everyone had stock. While there were warning signs of a
potential crash, many people ignored them or marked them as insignificant. October 24th is ... Show
Farmers were faced with severe droughts which caused most of their crops were destroyed. Farmers
would take out a loan to buy seed. When the harvest came they would reimburse the loaner. Many
farmers went bankrupt because they were unable to repay their debts.
After the crash of the stock market and the closure of banks nationwide, the Federal Government
took steps to prevent another crash or to at least minimize the impact. Additionally, they took steps
to get out of the depression. President Franklin D. Roosevelt proposed a "New Deal." His New Deal
introduced many agencies and programs that helped lower the unemployment rate and promote the
economy. Many of these programs are still in effect today, helping prevent another large economic
depression. The Federal Reserve also took measures to stop banks from closing like they did after
the crash.
The stock market crash caused an economic depression in the US and also worldwide. It destroyed
many businesses and investors and had a negative impact on America. Steps have been taken to
prevent a similar crash from

1987 Stock Market Crash
Lessons Learnt in Engineering and IT––Background Research Report Textual Analysis
"A Brief History of the 1987 Stock Market Crash with a Discussion of the Federal Reserve
Response" is a documentation written by Mark A. Carlson and was published in November 2006.
Mark finished his B.S. in Economics from the University of Minnesota in 1996 and further
completed his Ph.D. in Economics from the University of Berkeley in 2001. The author's nationality
is American and currently working as Principal Economist at the Federal Reserve. The source is
searched from an official federal website through google scholar. Therefore, it can be said that the
contents of the following documentation are academically reliable. The purpose of this textual
analysis is to determine if the document is acceptable for using in Lesson Learnt case study. The
analysis begins with assessing the dependability of the following document and going through a
brief overview of the main content and afterwards relating it to the semester topic and clarifying
differences in research.
The topic of the document is to review the events corresponding to the crash, a brief history
regarding the factors contributing to the severity of the 1987 stock market crash and several
solutions carried out by the federal reserve in the time of crisis throughout the event. The initial
information was given by ... Show more content on Helpwriting.net ...
Moreover, the stock market crash in 1987 was a shock of stability of the financial system, not only
because of the substantial price drop but also, we can clearly see that our functioning systems are
significantly flawed and can later be perfected for a better future. Therefore, we learnt more than
technical flaws, further improvements of our daily systems have to be made for a better

Stock Market False Prosperity
Second, since 1922, the stock market had gone up by nearly 20 percent each year. Almost everyone
invested in shares, due to a financial invention called buying "on margin." It allowed people to
borrow money from bank which could be used to buy stocks. This led to irrational exuberance of the
Roaring Twenties, but in fact that was a kind of false prosperity. Because of false prosperity，stock
market became the easiest way to get money, many people used loan to buy house .And their estate
were all based on credit and loan. Then they used their house to get money from bank again
.Furthermore, they put all the money into stock .So at this time the stock market developed rapidly
and stock about entertainment grew fastest. More mad more people were

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 on Helpwriting.net ...
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

The Stock Market Crash of 1929
Black Tuesday was Tuesday, October 29, 1929. This was the day the New York Stock Exchange
crashed. This was the single largest crash in the country. Black Tuesday hit Wall Street as investors
traded 16 million shares in one day on the New York Stock Exchange. Black Tuesday wiped out
thousands of investors and billions of dollars were lost. Black Tuesday was an event leading up to
the stock market crash. As a result numerous Americans lost all to a lot of their savings. Black
Tuesday was also known as the beginning of the great depression which was economic recession
that made Americans struggle to make money and provide food, shelter and clothing for their
families.
The great depression was also cause by the poor distribution of wealth. ... Show more content on
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Before 1931 banks were evened out because the people who would take out money were evened out
by the people who put in money. But in 1931 everyone tried to take out money and the banks didn't
have enough money to give everyone back all their money which is called a bank run. Therefore
banks started to close down. In the year of 1931 over 2,000 banks had closed. And in the year of
1943 4,000 banks had closed which had left countless Americans with no job and no money. People
were starving and lived without homes. The banks had wiped out hundreds of thousands individuals
life savings and left them hopeless.
The Dow Jones Industrial average reached its highest point which was 381.17 on September 3rd,
1929. The Dow Jones Industrial average plummeted in March 1929 but bankers reassured investors.
On black Monday the percent in change was –12.82 and the change was –38.33. On black Tuesday
the percent in change was –11.73 and the change was –30.57. The Dow Jones Industrial Average lost
90% of their value overall.
On September 26 the bank of England raised it rate to protect the gold standard. The gold standard is
when the value of a country's money is tied to the amount of gold the country possesses. Anyone
who was holding that country's paper money could present it to their government and receive an

Stock Market Essay
I have 100 thousand dollars to invest in the stock market that I will disperse among six different
companies. Each of the companies that I have chosen to invest in are different types of companies so
that all my money is not in one type of market. The companies that I chose consist of GW
Pharmaceuticals, Callaway, Genesco, Citigroup inc., McDonalds, and Ball Corporation. Each of
these companies are different market types and they are at different stages of growth. Through
purchasing 100 thousand dollar's worth of stock, I intend on these stocks doubling my money within
two years. The trading house that I will use for my investments will be Charles Schwab. I am using
this trading house because the rates are affordable at $4.95 a trade ... Show more content on
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(GCO). Genesco is a retail and whole seller of footwear and accessories. The reason I see this as a
high–risk investment that is worth it is because the stock recently started rebounding from a long
downtrend. The latest reports have also shown improvements. I will invest another $16,500 into
Genesco which will give me 625 shares with no dividend. Another high–risk stock I would get into
is GW Pharmaceuticals. This stock appears to jump up and down a lot which means if I could figure
out when it is at its lowest, I could buy a lot of shares and turn it back around once the stock peaks
again. By purchasing this stock, it gives me a stock that is related to medicine which allows my
money not only to be dispersed in different stocks, but different markets. GW Pharmaceuticals is
currently selling at $103.73 so with $16,500 I would buy 160 shares. The last stock that I would like
to invest in is Callaway Golf. By having this stock in my portfolio, it gives me a stock in the
sporting market. I picked this stock because it has been on a steady rise and the golf business is
doing better and better. I have an interest in this company and I own their product so I know I am
investing in a good product. The dividend is very low for Callaway at only .30% which means I will
not get a big quarterly check at all but I still like purchasing this stock. This stock cost $14.52 so
with $16,500 I can

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 on
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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 big debt 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

Investing in the stock market is one–way people can earn extra income or save for there retirement
or even as full time job. Depending on the time and money that you can afford to invest will
determine how much you can earn. There are some tricks and tips that can help you make the best
return on your investment. In this essay were gonna go over what the stock market is and how to
invest in it. Also how to start invest in the stock market as a day trading for a living. Stocks are a
percentage of ownership in a company. Stocks can be beneficial for both the buyer of the stock as
well as the company selling the stocks. In the article "What is the stock market?" It state's
companies sell stocks to get money to further research better ... Show more content on
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The company feels the same way. So when a stock has reached a high dollar value, the company
may split the shares, lowering the per–stock price. Splitting encourages more investors to buy.
Splitting actually means reducing a stock 's price but increasing the number of shares each
shareholder owns (what is the stock market?). This is one of the best scenario that can happen
especially if you're in it for the long run because this means that you have the same amount money
value. Plus, you have double the amount of shares that you started with. Now that the stock has
dropped in price more people can afford it and cause the price to increase again. To invest into the
stock market, investors need to buy shares in the company that they would like to invest in. In the
article "what is the stock market?' When investors buy stock, they become shareholder, which means
they can now own a "part" of the company. If the company 's profits go up, you "share" in those
profits. If the company 's profits fall, so does the price of your stock. If you sold your stock on a day
when the price of that stock falls below the price you paid for it, you would lose money (What is the
Stock Market?). Sometimes stocks fall and the stocks value isn't worth as much as one may have
initially paid for the stock. You still have the same amount of share therefore, one can have the
option to sell and take a loss or they can hold on

Introduction
In this increasingly globalising and volatile financial markets, the import of portfolio diversification
in investment planning cannot be overemphasised. We all know the old adage that says: "do not put
all your eggs in one basket".
In the past 12 months, the world's stock market has experienced a particularly high degree of
volatility that has never been seen in recent years. "On Monday 24 August 2015, about £74billion
was wiped off the value of Wall Street and FTSE 100, and the Down Jones Industrial Average lost
more than 1000 points at one stage on that day" (Allen, 2015).
The graph below shows how volatile the world's stock market has been over the last year using the
volatility index. Koesterich (2015) explains in the graph that higher index indicates that investors
perceive the stock market to be riskier. The graph shows the volatility index between January 2014
and March 2015. Many investors who have a greater proportion of their investment portfolio
exposed to stock market would have seen the value of their portfolio reduced significantly as a
result.
This article will consider the global issues that has led to stock market volatility in the past year. It
will look at how these issues developed, its effect on the equity and global economy and how they
interrelate with each other. It considers how investors can benefit by selecting and allocating assets
alternative to equity in their investment portfolio. This would help counteract the effects of the

Stock Market Stock Analysis
At the end of the stock market game the stocks that I own was Amazon, Wal–Mart, AutoZone, Ford,
Kohls, Toyota, Coca–Cola, and O'Reilly. These stocks have done good since I have bought them.
These stocks had their ups and down throughout the whole game, but although they didn't have it
that bad . They may have gained money, but, they also, losted money at the same time. Also, there
were days where the stock price went up and down since there were people out there that was
willing to pay for the stock at a higher price, but there were others that didn't think it was worth it at
a higher price.
Some of the other stocks that I owned at different times in the stock market game was AT&T,
Verizon, Disney, Mcdonald's, Nikes, and Home Depot. I made the decision to get rid of these stocks
because they were having me to lose more money then I was gaining from them. At the end of
having these stocks I losted more money then what I bought them for.
Some of the stocks that I should have bought more of was Amazon, and Wal–Mart. Even though I
should have bought more of these two stock; I didn't for one reason, because I wanted to see how
the other stocks will do. These two have made the most this past month than any of the others did. ...
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As time when on I could see where I was struggling to make anything off of different companies.
Throughout the whole game I feel like I did good and bad. At the beginning of the game I did
horrible like there's wasn't any hope at all, but, nevertheless, I figured out which ones to invest into.
After figuring out which ones to invest more into helped out a lot since then I started to do good.
The things I could have done differently to be more successfully are try to figure out which ones to
invest into at the beginning of the game and then bought more of the better stocks that was doing
better than the

The Stock Market: A Valuable Gamble
The stock market is a lot like gambling because people can win big money if they are lucky enough.
The stock market plays a pivotal role in the growth of the industry and commerce of the country and
eventually affects the economy of the country to a great extent. If a company want to raise funds for
further expansion or setting up a new business venture, it has to either take a loan from a financial
organization, or they have to issue shares through the stock market. Student of the economy should
be aware of the value of investmentthrough the stock market, the history of the stock market and its
impact on everyday life.
Stocks are considered an equity investment. So if someone or a company invest in a stock, they have
an ownership stake in the corporation that issued it, or offered it for sale. Stocks are kind of like
pieces of the corporate pie. When you buy and share stocks you own a slice of the company. So why
do people buy stock? The corporation's stockholder or shareholder sometimes involves millions of
people and companies. They all have equity in the company as I referred to earlier, or they own a
fraction proportion as a whole. They buy stocks because they expect to profit when there company
gains profit. There are two different type of stocks; common and preferred stock. Common stock is
the most common form of stock. With having ownership of a common stock, a person can exercise
their right to vote on corporate decisions. This is the most distinct difference

Stock Market Failure
As of now, you are all most likely aware that our nation's economy is rapidly declining because of
the stock market crash. What you may not know is that your father and I have lost our life's savings
because of it. You see, your father and I decided to invest in some shares, hoping to make a profit in
the long run. What a mistake that turned out to be! Although we only used a miniscule portion of our
money, we bought the stocks on a margin, receiving loans from the bank. When the market crashed,
our bank announced that all loans must be fully paid off. We lost everything. We were forced to pay
off a loan that cost more than our personal investment in the shares. The loan was worth such a great
amount of money that your father and I had were

The Stock Market Of The United States
The stock market in the United States is run so anyone can view the trades, their values and no
information is hidden. Compared to the stock market, the bond market is run behind closed doors
causing problems in the economy. The difference between the two markets became more understood
during the Great Recession. When the unethical ways of individuals in the selling of bonds caused
corruption that contributed to the recession, many people were hit by the repercussions of the selfish
actions. Selling the bonds to people who weren 't in good financial situations became a normal
action which cheated many individuals out of money. The bond market would be better off being
transparent parallel to the stock market because less people would ... Show more content on
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While he knew what he was doing to earn money, not many other people did. His strategies to work
the market in the way that he did was disreputable. He used the possibility of failure of other people
to further himself financially. Morgan chose AIG's Cassano to sell the bonds because he worked for
"a triple–A–rated company willing to sell them" (Lewis, 70). The triple–A–rated company could sell
the triple–A–rated bonds, which were really triple–b–rated bonds grouped together to appear as a
better rating, even though the group was just a bunch of poorly rated bonds all together. When the
bonds would be sold, no knowledge of the terrible ratings had to be disclosed. If the bond market
had more regulations as to what had to be revealed, these companies wouldn 't have had the chance
to bankrupt many people and have so many people default their payments due to the awful loans the
banks were providing. AIG was selling the packaged credit default swaps (CDS) left and right.
Banks and hedge funds were buying them from not only AIG but other banks and hedge funds who
would package them again and sell them over and over. AIG was the only firm that was not buying
the packaged loans, only selling them. These people who were selling the packaged CDS' didn 't
know the damage they were doing to themselves and others. They were selling bonds to people who
they knew would default, which gave them worst

Essay On The Stock Market Crash
Essay 5: Cause And Effect over "The Stock Market Crash" As America became more populated in
the cities, the necessity of products and food came along. Poverty was still visible. However, it was
until the 1920's that America became wealthy and prosperous. The stock market crashed on October
23, 1929, because of overproduction of goods and excess speculation leading to one of the darkest
times in America. In the Jazz Age or Roaring 20's, America's financial situation was phenomenal.
From all the other nations America was above. People began incorporating more and more into the
cities getting diverse and better jobs. Families grew at a steady rate leading them to buy all kinds of
products. All consumer goods, industries, and transportation means grew exponentially. ... Show
He created a skim to help people buy cars with money they did not have. Not only with cars, but he
taught them how to make money through speculation. This kept the economy steady and it spiked
again. People bought stock borrowing over 2/3 of its value from the bank, selling it after a couple of
months, giving the bank its money back and keeping the profit. People were making a lot of money
with this process. However, it was vowed to fail soon, everything as good and easy as this was,
always did. On August 27, 1929, speculation reached its peak. Vast amounts of people learned to
speculate, and the numbers were so high that there were more people selling than buying. Investors
grew uneasy. All people wanted was cash, cash, cash. On October 23, 1929, Blue Chip stocks
plummeted, and in just two hours, ten million dollars were wiped out. A bank tried mending the
problem buying the stock at its original price, but days later no one could solve the problem. The
total losses were thirty–three billion in a

The Importance Of The Stock Market
2017 was a great year for all three stock market indexes. The Dow Jones Industrial Average is up 25
percent, the S&P 500 is up 19 percent, and the NASDAQ is up 28 percent. The increases in these
markets reflected a booming U.S. economy and excellent corporate profits. The expectation of
President Trump signing a tax cut bill, which he signed a few days before Christmas, also fueled the
rise in the stock market.
One of the things this tax cut bill offers is a lowering of the corporate tax rate from 35 percent to 21
percent. Because of this, American businesses are expected to return hundreds of billions of dollars
in foreign profits back to the U.S., higher more workers, spend money on building domestic
factories, and pay down debts. This ... Show more content on Helpwriting.net ...
You may see terms like investing, saving, and trading used interchangeably, but these terms have
different meanings. Investing involves having a long–term goal of five or more years where you are
looking to maximize profits with a reasonable amount of risk. Saving can either be short–term or
long–term, but unlike investing, saving involves little to no risk. Saving is more about preserving
capital rather than growing capital. Trading involves short–term ownership of stocks. Ownership can
be anywhere from a few minutes to one year. Traders analyze stocks like investors, but traders are
more interested in short–term swings in the market for immediate profits. If you are looking to
secure your financial future, it is best to invest.
What kinds of investments are out there?
There are many different types of investment available that can suit your investment strategy and
risk tolerance. Here is some basic information about different types of investments that can help you
achieve your financial goals:
Stocks – Owning shares of a company means you own a piece of that company. You can own shares
of a small company with one location and less than a million dollars in annual revenue to a large
multinational company with billions of dollars in annual revenue. The types of stocks include
domestic, international, penny, growth, value, and many more. Many stocks pay dividends that you
can take as cash or you can reinvest and purchase more shares. You can

The Stock Market Crash Of 1929
The cause of the crash in the stock market in 1929, was an incident that occurred on October 29,
which was called Black Tuesday. Investors traded 16 million dollar of shares toward the New York
Stock Exchange in a day, upon that billions of dollars were lost and investors lost their business or
their jobs. one of the major reason why was that car and other factory produced certain quota of
cars. during the great depression people who were rich is now poor and the poor and the poorer.
people were living in terrible condition.
The event that lead up to the stock market crash of 1929 was a result of various economic
imbalances and structural failings. these are some of the most significant economic factors behind
the stock market crash of 1929.
During 1920s known as "The Roaring Twenties" was the time when America was over dependent on
production, automobiles, etc were the leading industry, there was divided line between rich and
poor. 60% of the population was living below poverty levels. There was uneven distribution of
wealth, 6% of the wealthiest people in the country were getting most of American income and, 33%
of the income and richest, 1% owned half of the nation's wealth. While the united states were doing
extremely well during the 1920s, most of europe is still dealing with the devastation of World War I.
America soon become a superpower world bank and, europe started borrowing and buying less of
American products. While there was a

Throughout most of the 1920's there was a large boom in the stock market. By August 1929, there
was massive expansion and stock prices reached their peak. In the words of PBS, "A boom took
stock prices to peaks never before seen" (PBS 1). However, all good things eventually come to an
end. What must have felt like over night, the stock market crashed and this would later be known as
one of the most devastating economic downturns in U.S. history. The Stock Market Crash of 1929
was so significant but to this day people question why it occurred, how it affected the public, how
the crash was eventually resolved, and how it affected the U.S. economy for decades to come. I hope
to analyze information about the Stock Market Crash of 1929 provided by economists, the
government, and more to not only discover answers to the questions above, but also understand why,
in hopes of preventing another event of this magnitude from occurring again. Just about everyone
has a reason for why the Stock Market Crashed in 1929. Aside from the views of the average person,
Investopedia interviewed several economists who said that, "the market was overbought, overvalued
and excessively bullish, rising even as economic conditions were not supporting the advance"
(Pettinger 2). In order to completely understand what that means, it needs to be broken down and
people have to watch what occurred pre–Stock Market Crash.
Essentially what economists are trying to say is that businesses were investing

stock market crash Essay
The Stock Market crash of 1929 has been looked at as the greatest symbol of depression is our
countries history. Although the Stock Market crashing had a huge effect on the beginning of the
Great Depression, there are still factors to consider when looking for a source to blame. It's hard to
put responsibility on the stock market for something so huge and disheartening. The Great
Depression is seen as a slippery road downward, not a sudden jolt into hopelessness.
The Stock Market in the 1920's had consistently seen prices climb over the last few years. By the
fall of 1929 the prices of stock were severely overpriced and unaffordable. When stockholders saw
the severity in the prices they all panicked and began ... Show more content on Helpwriting.net ...
The banking system of the 1920's is not what it should have been. Today we have insurance on the
money we put in the bank, so if that bank should go under, we can still have our money. This was
not the case in the 20's. If your bank closed, and many of them did, you lost all the money you had
saved. No one could help you and many families ended up on the street due to this loss.
Bread lines were now crowded as people tried any way they could to feed themselves and their
children. Suicide was now at a high as well. Many businessmen or farmers and really anyone else
who had lost their job or business due to the times often committed suicide as the easy way out. The
way out of the Depression was a long road ahead.
FDR, in my opinion, is mainly the reason that the Great Depression ended. FDR would hold
"fireside chats" everyday on the radio. This was very consoling for a country who thought they were
headed nowhere. It was nice to hear a man of power tell you that everything was going to be okay.
He gained even more great respect after announcing the New Deal.
The first New Deal was aimed towards business recovery. He insisted that the banking industry now
be regulated and developed F.D.I.C. that would insure your deposits up to $5,000. This is the same
system that we use today.

Stock Market Simulation
Software Requirements Specification
for
Stock Market Simulator
Version 1.0 approved
Prepared by Divesh Mirchandani, Abhishek Oturkar, Sumit Kriplani, Kedar Nadkarni
30–01–2015
Table of Contents
Table of Contents ii
Revision History ii
1. Introduction 1 1.1 Purpose 1 1.2 Document Conventions 1 1.3 Intended Audience and Reading
Suggestions 1 1.4 Product Scope 1 1.5 References 2
2. Overall Description 2 2.1 Background 2 2.2 System Context 2 2.3 System Capabilities 3
3. Behavioural Requirements 4 3.1 System Inputs & Outputs 4 3.2 Detailed Output Behaviour 4 3.3
Software Interfaces 4 3.4 Communications Interfaces 4
4. Quality Requirements 12
5. Fundamental ... Show more content on Helpwriting.net ...
8. Google Finance. Google Finance. Google. [Online] 2010 February.
http://www.google.com/finance.
9. Investopedia. Game: Investopedia Stock Only Game 2009 – No End. Investopedia. [Online] 2010
February – April. http://simulator.investopedia.com/Portfolio/.
Overall Description
1 Background
This intention of this project is to simulate a stock exchange environment for users to learn the
basics of stock exchange. This learning process can be simple, stress free, and enjoyable in a gaming

environment. This environment allows players to hone their skills through competition with other
players using virtual money to buy and sell stocks based on a real stock market. Each player can to
formulate their own strategy and assess their performance through our user–friendly, web based
stock exchange simulator. Through experience, players will gain confidence in their investing
abilities using a variety of stock exchange techniques, which have been implemented in our
software. We hope to make the difficult task of learning to invest in a high risk, stock exchange
market an enjoyable experience.
2 System Context
Web based application – HTML based application written using the Django web framework.
Includes: o Registration/ Login system o Game cycles o User history – all data saved for user
portfolio available for reference during a login

Stock Market : Personal Experience
Stock Market Essay: Personal Experience Pages 1–2 The stock market game was interesting to me
because I never knew anything about stocks. I struggled in making trades in the beginning of the
game because I didn't understand how to properly trade nor understood how money could be earned
or lost. As time went by, I started to learn how to trade more appropriately to either gain some or
lose just a slight amount. I found myself constantly depending on certain stocks rather than going
for a variety like others seemed to do. I would only trade one thing at a time unlike everyone else as
well because that's what I felt comfortable with. However, I realized that sometimes to gain a great
amount, I have to go out of my comfort zone and just take a risk; although, I still didn't do it. The
idea of having essay pages written actually motivated and pressured me at the same time for me to
play it safe. I didn't necessarily aim for being the top three nor did I focus on having no essay pages
written but rather, I wanted to have a minimal amount of pages to write and I suppose I did succeed
in that goal. The first few trades that I made started off being low–priced because I was too afraid of
losing money which would result in me writing more essay pages and I did not want that. I focused
on one stock called VisionChina Media Inc. (VISN) because it was the lowest price that qualified for
the five dollar minimum for the stock market game. At this time, I still didn't understand how to

The Price Of The Stock Market
These sentiments, as so dramatically expressed by an average American day trader, are endemic
among the men and women who endeavor to navigate the daily volatility that roils the markets. As
the demand for instantaneous results and better returns at less cost rises, investors' traditional
reliance on stockbrokers is waning, albeit slightly. The resulting stress from this shift in
responsibility from the broker to the individual is not always obvious, but almost certainly
inevitable. The stakes seem raised when any loss or gain comes as a direct result of the investor's
own actions. Instability in the markets often fuels a dizzying ride of ups and downs, and their
commensurate emotional highs and lows. Nevertheless, over the past decade, ... Show more content
on Helpwriting.net ...
In 1971, the situation improved when America's first virtual stock exchange, or NASDAQ as it is
commonly known, was created. Although its potential was not immediately recognized by the
average American, NASDAQ's implementation created a whole new world of investing for the
small investor. Arguably the most notable of these historical financial changes occurred in 1975,
when Washington deregulated commission rates on brokerage accounts. The Securities and
Exchange Commission (SEC) deemed standard commission rates to be illegal, and the result was
that discount brokers could offer reduced commission rates. Prior to the SEC's ruling, commission
rates were fixed at one percent. This shift in power opened a clear pathway for personal financing to
develop, as competitive rates offered investors more options. Since 1975 to the present, the
evolution of the markets has quickened and day trading has taken off, particularly in the last decade.
Day trading is now so popular that it has become a way of life for many Americans and often
consumes almost every aspect of daily life. Although this new found independence may be viewed
by many as a good thing, it is hardly recommended for the faint of heart. The SEC warns that, "Day
trading is an extremely stressful and expensive full–time job. Day traders must watch the market
continuously during the day at their

The Stock Market Theory Of Merger
Outline the stock market theory of merger and set out its predictions about the effect of merger on
post–merger profitability. What does the empirical evidence on mergers show about the gains from
merger? In light of your analysis what policy recommendations would you make for policies to
control mergers and take overs.
In the vast and voracious business world, attention from media as well as corporations themselves
have been predominantly focused on the phenomena that is mergers and acquisitions, undoubtedly
due to the sheer volume and frequency of merger and acquisition activity in the past couple of
decades. Yet, societies appetite analyzing mergers have been documented as far back as the merger
waves of 1898–1902 (Nelson 1959) ... Show more content on Helpwriting.net ...
James Tobin theorized that firms would continue to invest as long as the values of their shares
exceeded the replacement cost of their assets, therefore highlighting that the market value of a firm
equals total asset replacement cost (Tobin 1958). Furthermore, market value of a firm to net
replacement cost Is best expressed in relation to Tobin's Q equation where if Q value is greater than
1, then a firm should consider expansion and growth as profit derived from net assets should exceed
the total cost of assets because if Q is a measurement of performance then 'takeover returns are
larger if the target is performing poorly, and the bidder is performing well' (Servaes 1991).
Contrastingly, if the Q value was lower than 1 , the firm would be better off selling its assets as
monetary value of the assets are more than the value of retaining them . According to neo–classical
economic theory mergers occur from a result of profit maximizing behavior where rationally
companies merge to gain a competitive advantage in the market place, recognized by the extent to
which the company has acted out its 'synergy' basis which is the idea that by combining business
strategies and activities, performance will increase and efficiency will lead to cost reduction due to
the essential notion that a business will intend to merge with another

The Stock Market Crash of 1929 "started" on the 24th of October 1929 with 12'894'650 shares being
traded; this is the same day that Richard Whitney went to the stock exchange and bought targeted
shares in an attempt to stabilize the stock market. As will be made evident, this did not work. In fact,
an even worse day, dubbed "Black Tuesday", occurred on the 29th of October where 16'410'030
shares were traded. From the week of October 23rd to 31st the panic settled in and a total of 70.8
million shares were traded. This crisis, beginning in the United States, rippled across the whole
world given that it was interconnected through the gold standard. The Dow Jones Industrial Average
had gone from a high of 386 points to a low of 40.56 points by 1932. In fact, according to Dietmar
Rothermund's study of the global impact of the economic crisis, "all major factors contributing to
the depression can be traced back to the United States of America". As a matter of a fact, the historic
loss of 30% of the United States' real GDP from 1929 to 1933 was the wake up call that the
economy needs to be controlled. This loss is what led to unprecedented levels of government
intervention and the reshaping of Western Civilization economics with the New Deal and following
similar regulations.
The Stock Market Crash led to pioneering changes in many aspects of the American government
and society; one of those changes was the discontinued use of the gold standard. The gold standard
linked the

Unpredictable Stock Market

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