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The role of the stock market in the economy
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Stocks an easy way to gain money but also a fast way to blow it all in my AG economics class we were given a task to perform and it was to gain money in the stock market. The middle class only makes 25,000 to 100,000 a year and to have the chance to learn how to flip that and double that money is skill evey one should know. I was given the chance to do and play around with fake money on the internet to learn how to manage stocks and manipulate them. Our teacher gave us a login to a game called the stock market game where we had to choose certain stock to see which ones would do better and if any of our stocks would crash. The game only let us choose from the New York Stock Exchange so the market wasn’t a wide variety of the whole market but it gave a small understanding of what it feels like to cash in or to be sitting in the dog house.
When I started out I began to look for hot brad names to see what everyone was ranting about but I started to do research and I found that Budweiser was the best choice to start out with and I bought one hundred stocks for that is the minimum for the game to buy stock so I waited one full week, after the week was up I saw only the number rise from there so I decided to begin to watch it after my first purchase it only began to rise after the purchase. I then bought two hundred stocks and watched my stocks only began to rise another week passed and we took a hit but not a major hit only 2 points but not only BUD took a hit so did the whole market and one more week passed and then I bought 250 stocks and after I started to mess with little stocks but my major stocks was Budweiser. For there have been on a major rise in the last 3 years and they haven’t taken a major hit in years, it’s been a steady ...
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... 1852 and is has lasted since then. This company started as any other company from the ground and it rose from there in stocks you can tell if the company is a fluke or not just by looking at what they do and this sock took it to the bank with a climbing rate this company never fails. I found out that every stock will take a hit at some worse than other that’s when life kicks in, but when you have proof all ways take it and never look back. Stocks really helped me out by teaching me that you must look first before just throwing your money around.
Works Cited
Author: google , Google Finance BUD, 4/21/2014, https://www.google.com/finance?q=NYSE:BUD&sa=X&ei=QMhVU4f-LY-MyASNlYHYCA&sqi=2&ved=0CCYQ2AEwAA
Author-, Calories, Carbs and alcohol,4/21/2014http://www.realbeer.com/edu/health/calories.php
Author : wiki, Budweiser, 3/7/2014http://en.wikipedia.org/wiki/Budweiser
Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing
People´s optimism about the stock market was high right before it crashed. According to John T. Raskob, “ If [people] invest in good common stocks… [they] will be rich… [after 20 years]...” (Document C). In other words, everyone could become rich by investing in the stock market, and that is what people believed.
In the 1920s, it seemed as if the stock market was the safest and easiest way of gaining money. When people heard of this, they started to purchase stocks as well, but by stock speculation. Stock speculation was the purchasing of stocks without any knowledge of the company’s financial situation, meaning people just assumed that every stock would give them a profit. To make matters worse, banks began loaning out money to investors, in order for them to purchase stocks. Soon enough, in early 1929, banks were receiving many warnings about loaning too much money. However, this did not pose a real threat to banks or investors, for they thought that the stock market was just going to keep on going up. Unfortunately, this was not the
The stock market is a vehicle to invest money. It is where consumers buy and sell fractions of companies, and is referred to as stocks. A proven method to achieve wealth while keeping up with inflation, comprised of publically held companies who offer goods and services that are used by the general public daily. Companies sell stocks to public investors in a free and open market environment on a daily basis, which is an effective strategy to build a sound financial future.
This did not last long because just a quickly as they rose so did they fall. Within a year their stocks were down to little of nothing, and their name was not one someone wanted to be associated with. The downward spiral can be contributed to the organization culture and improper checks and balances.
In an era of superficial prosperity and indulgence, most Americans “threw all care to the wind” (Danzer, Klor de Alva, Krieger, Wilson, Woloch). Ron Chernow observed that “in the 1920s you could buy stocks on margin. You could put 10 percent down and borrow the rest against your stocks.” Buying on margin is exactly what reflected the American public of the 20s- reckless and optimistic. By using leverage to invest, buyers can maximize their profits through the stock in a bull market ("Buying Stock on Margin"). This idea of using brokers’ money to gain profit for themselves appealed to many Americans. The great bull market that had lasted for six years further instigated irrational exuberance- or the extreme confidence in investors that they overlooked the degrading economic fundamentals- in the American public (Shiller). However, this overvaluation proved to be deadly. Margin loan, like a double-edged sword, eventually stabbed Americans in the back- and stabbed them hard. The
Warren Buffet once said, “Someone is sitting in the shade today because someone planted a tree a long time ago” (Buffett, Cunningham 51). During the deepest and longest-lasting economic downturn in history, which sent Wall Street into a panic and wiped out millions of investors, the Great Depression, Warren Buffet was buying and selling his first stocks. Amid the difficult times, Warren Buffett became one of the greatest investors ever and is regularly ranked among the wealthiest people in the world with a net-worth of 66.7 billion dollars (“History”).
The stock market is an enigma to the average individual, as they cannot fathom or predict what the stock market will do. Due to this lack of knowledge, investors typically rely on a knowledgeable individual who inspires the confidence that they can turn their investments into a profit. This trust allowed Jordan Belfort to convince individuals to buy inferior stocks with the belief that they were going to make a fortune, all while he became wealthy instead. Jordan Belfort, the self-titled “Wolf of Wall Street”, at the helm of Stratton Oakmont was investigated and subsequently indicted with twenty-two counts of securities fraud, stock manipulation, money laundering and obstruction of justice. He went to prison at the age of 36 for defrauding an estimated 100 million dollars from investors through his company (Belfort, 2009). Analyzing his history of offences, how individual and environmental factors influenced his decision-making, and why he desisted from crime following his prison sentence can be explained through rational choice theory.
Almost everyone has heard of Wall Street, but not many people know much about it. The stock market is a great way to make cash easily, but if someone goes into the stock market blind with no background information, they can lose a lot of money. There are many things a person should know about the stock market before getting involved with it. This includes: what a stock is, why prices of stocks rise and fall, and the best ways to make money with the stock market.
In order to make the most logical and beneficial purchases, it was first important that I fully understood the terminology used within the stock market. Words such as blue chip stock, mutual fund, stock splits, and ticker symbol would all prove incredibly important for me to understand if I was to do well within the game. For example, the first stock I bought, Disney, taught me the definition of a ticker symbol - in Disney’s case, DIS. This enabled me to quickly identify other stocks by their ticker symbols as well, and I soon became familiar with the term. In addition, when I bought Coca-Cola, I soon learned its financial importance as a reliable blue-chip stock, as it and other stocks like it proved profitable for me. My class was also required to buy a mutual fund, and in doing so I learned how exactly a mutual fund differs from a stock, the positives and negatives of buying one, et cetera. In addition, my knowledge of the history that places like the NYSE contains proved incredibly important towards my success within the game. Because I learned about the NYSE’s foundation and the many people who worked to make it what it is today, I was able to fully appreciate the importance of the stock market as I moved through the simulation. This, in turn, helped me take the Stock Market Game seriously and not waste any of my money on stocks that I considered
Golden opportunities lie ahead for those who invest well in stock market securities. "The stock market, which was once the province of the very rich, is now easily accessible to millions of ordinary investors." (Ethical Issues in Financial Services). Ordinary investors have flooded stock market securities with money in hopes of striking it rich. Many people were told by investment brokers the stock market securities are safer than it used to be. They were informed the Security and Exchange Commission (SEC), and the National Association of Securities Dealers (NASD) are the watchdog for the small investor.
in 1967. The company has lived with the changes that have occurred within and around it. Through the
The stocks I invested in were BSX (Boston Scientific, $10,180.17), CKEC (Carmike Cinemas, $10,204.32), CMG (Chipotle, $1,844.84), COF (Capital One, $9,806.55), CPN (Calpine Corp. $9,920.30), FEYE (FireEye Inc. $9,904.23), HSY (Hershey, $10,120), MERC (Mercer International, $10,444.72), OXY (Occidental Petroleum Corp., $9,852.64), T (AT&T, $10,026.60), and WM (Waste Management, $10,025.67). I invested in BSX, HSY, and T from the very first day of buying in late January. I invested in ten
Have you ever invested in the stock market? If so, do you know where your money is really going? The stock market is a risky business and it can make or break people’s lives. The stock market is used daily to keep America on its trembling feet; it’s also being used at this very moment to cheat people out of money for personal gain. This happens every day in the stock market and its evolving rapidly, super computers that can trade faster than a blink of an eye, social media trends that can predict share values, and intricate stock market schemes that are getting harder and harder to find and take down.
And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”Even Jim Rogers the famous commodity Guru advocates staying in cash most of the time until you find screaming bargains. Jim stays away from the markets for long periods of time, entering only when there is panic all around and assets develop