The Importance Of The Stock Market
explanatory Essay
2323 words
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 to 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. While the stock market keeps the world turning and the economy steady, the stock market is also being used in manipulative ways that are not always legal. What is the stock market? Businesses share part of the company by selling stock, or shares of ownership. When investors own shares of a company, that company is considered public because the general public has an ownership stake in that company. At the high ranks of the companies are the board of directors, whose job it is to make sure the business’s managers are working in the best interests of the multiple owners and shareholders. Companies sell shares so they can expand their businesses and make them better, such as by building manufacturing plants, buying other companies, and developing new and improved products to keep their business profitable. America’s railroads, steel manufacturers, car companies, and telephone companies all started with the help of money from opening up their business to the Stock Market. The Stock Market started in the 1920’s. People who were smart enough to buy them back then could build up a fortune since the market was growing so rapidly. One wh... ... middle of paper ... ...as up to, but he didn’t. he stayed at Stratton-Oakmont and continued his old ways, he learned that he was being investigated again and tried to hide all of his money in Swiss bank accounts but the banker he was doing business with got caught in America for sexual assault and turned Belfort in to get away with it. Belfort was exploited and arrested; he went “undercover” to incriminate his friends and other brokers to get less jail time. Belfort was sentenced to 2 years in a minimum security prison, which was more like a country club, and ordered to pay back 150 million dollars to the people and companies that Stratton-Oakmont had stolen money from. Belfort was released from prison and now speaks at investment seminars to help pay back the restitution of 150 million that he owes. If he does not pay it back in the next ten years, he will be ordered back to jail.
In this essay, the author
- Explains that the stock market is a risky business and it can make or break people's lives. it is being used to cheat people out of money for personal gain.
- Explains the stock market and how investors own shares of a company.
- Describes how the stock market crash of 1929 was the springboard to the great depression.
- Analyzes how the stock market has been used to manipulate aspects like national security and social media. in 2012, a russian hacker gained control of an official russian government twitter account.
- Explains that analysts are working on ways that twitter and other social media websites can be used in predicting stock points and how they fluctuate.
- Explains that super computers are hard at work, trading stocks faster than the speed of light. speed traders have little to no personal interests in the thousands of companies they are constantly buying and selling shares from.
- Explains that there are now more than 80 different electronic stock exchanges and 2 new electronic methods to make trading faster than ever before.
- Explains that speed trading is not yet illegal, but there are several types of extensive stock market scams that have ousted people billions of dollars.
- Explains that bernie madoff ran the most effective ponzi scheme to date and no one had any idea until it all collapsed.
- Explains that madoff was technologically challenged and had trouble with the simplest computer tasks. he was charged with 47 counts of fraud and sentenced to 150 years in a minimum security prison without parole.
- Explains that jordan belfort and his firm stratton-oakmont were the masters of the pump and dump scheme.
- Narrates how belfort left stratton-oakmont and hid all of his evidence before the sec and fbi knew what he was up to. he went undercover to incriminate his friends and other brokers to get less jail time.
Related
- explanatory
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- comparative
- opinionated
- The History of the Stock Marketexplanatory essayThe History of the Stock Market Once there was a time when “shares in business corporations were rarely bought and sold because few companies were considered promising financial profits” (Blume 21). That is hard to believe considering almost everybody has invested in some stock today. The stock market went through some distinct changes since its inception, and has evolved into a shaping force in the world today. There is one idea that sparked the fire which produced the stock market: capitalism. Everything the stock market is, and was, rooted in the basic idea of capitalism.
In this essay, the author
- Explains the history of the stock market, stating that shares in business corporations were rarely bought and sold because few companies were considered promising financial profits.
- Explains capitalism as an economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.
- Explains that the new york sock exchange began in 1792 as an effort to circumvent government regulation.
- Explains that twenty-four stock brokers met under a buttonwood tree on the north side of wall street and made the buttonwood agreement.
- Explains that some outstanding financial powers of the united states used their wealth to corner the stock market. the government tried to stop monopolies from forming by passing the sherman anti-trust act of 1890.
- Explains how j.p. morgan and harrimen wanted control of the northern pacific railroad company in 1901, so morgan bought all the outstanding stock available, raising the stock price from $112 to $149.
- Explains that in the late 1800s and early 1900s, the stock market was easily swayed, and cut-throat business was a way of life.
- Analyzes how a few brokerage firms decided to allow their investors to pay for only ten percent of the actual amount of stock they bought.
- Explains that 1929's market failure was caused by the initial panic in 1929 and the slow grinding misery of the longest depression in the nation’s history. the market recovered after the start of word war ii.
- Explains that smart investors knew that one must spread his holdings amongst a pool of stocks, just like the old phrase about never keeping all your eggs in one basket. these ideas paved the way for the first mutual fund, created in 1924.
- Explains that the 1970's brought about a whole new era. the economy had grown too fast, causing ten percent inflation. real estate and fixed income became prominent assets.
- Opines that learning from the past is important, and a great example to learn from is the crash of 1929. we caught the monopolies before they became too out of control, but failed to stop the small investor from driving the market down.
1065 wordsRead More - Essay On The Stock Market Crash Of 1929analytical essayThe Stock Market Crash marked a major turning point in the history of the United States. For decades the U.S. was the world’s leading superpower, but after the crash the country cascaded into the worlds most harsh depression. This crash was caused by a series of problems in the U.S. including, the over production of goods, unequal distribution of wealth and poor regulation of the stock market itself. Many can argue that the crash of 1929, strengthened the nation, allowing for policies such as roosevelt's first new deal, second new deal, the glass steagall banking act, and new regulations in the stock market, and for big business (Blumenthal, Karen). However, what can’t be argued is how the crash sparked a panic as companies, peoples, and the nation sank into the great depression.
In this essay, the author
- Explains that the 1929 stock market crash marked a major turning point in the history of the united states.
- Explains that the 1929 stock market crash created chaos and panic in america. it was caused by overproduction and underconsumption of goods, and credit in the market.
- Explains that the stock market was being abused for years. people used credit to buy stocks, borrowing from banks, and were unable to pay back their loans. the government used a policy of laissez faire, the consolidation of corporation was not challenged.
- Explains that as the confidence in the stock market began to fall, the people who bought stock were eager to sell. this created a chain reaction, which led to an exit of foreign investors.
- Explains that president hoover refused to send financial aid to the people for the united states, saying it would be a disservice to unemployed. franklin delano roosevelt became the person who got the nation out of the depression and into world war 2.
- Explains how hoover refused to accept blame for the stock market crash, but instead took credit for golden age before hand.
- Analyzes how roosevelt's first new deal helped strengthen the nation after the stock market crash. roosevelt promised to pass legislation within the first 100 days of his election. congress passed the emergency banking relief act.
- Explains roosevelt's speech in order to gain support of the american people to pass new pieces of legislation that would get america out of a depression.
- Explains that the glass-steagall act and the fdic were attempts to restore public trust in the deposit system and stop the need to withdraw.
- Analyzes how roosevelt created his "fireside chats" to connect with the american people, and to encourage nationalism during the depression.
- Concludes that the stock market crash of 1929 created a terrible place in american history, but the crash also strengthened the nation for the future.
1185 wordsRead More - Causes Of The Great Depression Essayexplanatory essayIn 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
In this essay, the author
- Explains that the great depression was the longest american slump in the economy to ever occur.
- Explains that in the 1920s, there was wealth inequality between the rich and the poor. the extremely wealthy class had a combined income of about forty-two percent of all incomes.
- Explains that overproduction was a big problem in both industrial manufacturing and agriculture. the expansion of production and other costly strategies during world war i left farmers in debt and the agricultural system failing.
- Explains that stock speculation and bank loans played into the cause of the great depression.
- Explains that the stock market crash of 1929, also known as the wall street crash, did incite economic collapse in some way. low wages, failures in the agricultural sector, increase in debt, and a large number of bank loans may have contributed to the crash.
- Explains that stocks began to slowly decrease in september and early october of 1929. on black thursday, stock prices collapsed completely and billions of dollars were lost.
- Explains that the stock market crash of 1929 caused debt and poverty for many people. by 1933, 11,000 of america's 25,000 banks had closed.
- Explains that after the market crash, production of goods began to decline, mainly because many people lost so much money because of the wall street crash. between 1929 and 1933, industrial production declined by 47%, and the gdp fell by 30%.
- Explains that in the great depression, hourly pay rates were kept constant by manufacturing firms, meaning that wages did not drop. in 1933, unemployment rates reached over twenty percent.
- Analyzes the factors that played a part of actuating the great depression, such as wealth and income inequality.
1111 wordsRead More - The Stock Market: The Causes Of The Great Depressionexplanatory essayThe Great Depression was an economic recession that began on October 29, 1929, following the crash of the U.S. stock market. This was a tremendous tragedy that placed millions of Americans out of work and was the beginning of government involvement in the economy and in society as a whole. The crash of the stock market is what ultimately caused this depression. After about a decade of prosperity, the US was thrown into despair on Black Tuesday as stock prices plummeted. Numerous amounts of people tried to sell their stock, but no one would buy. The stock market, which once was the surest ways to become rich, quickly became an easy path to bankruptcy.
In this essay, the author
- Describes the great depression as an economic recession that began on october 29, 1929, following the crash of the u.s. stock market.
- Explains that during the depression, life was hard everywhere. people stopped buying products, squatted in buildings, or lived in hoovervilles. dust storms made it difficult to grow crops.
- Explains that president roosevelt came into power on march 4th, 1933. fdr took over presidency when america was in the midst of the worst economic crisis in its history.
- Explains that the new deal was a speech and plan to fix the problems of the great depression. fdr advisors helped him come up with fifteen major laws, including the banking act of 1933.
- Explains that the social security act was an act passed for unemployment insurance, children that were dependent, aid to the blind, deaf, and disabled.
545 wordsRead More - The Stock Market Crash and The Great Depression in the USanalytical essayJanuary 4th, 1898 was when the stock market was started. Everyone wanted to own part of a business. The way it worked was that the more stock you bought of one company. The more of a owner of that business you were. If that company were to become popular, than the price would go up because more people would want to be apart of owning that business. A bond is a lot different than stocks, Bonds are basically loans. At first the Stock market was conceived as a risky investment, but over time it became stronger and people started to trust it more and more. Pretty soon the New York Stock Exchange was booming with business. When more people started investing the price of stocks started to begin to increase. This occurred first in 1925. For the next year the price of stocks continued to go up and down. Then in 1927 they shot up.
In this essay, the author
- Analyzes how the 1929 stock market crash impacted the united states by putting millions of people out of jobs, and placing america in one of the deepest financial and economical holes of that time.
- Explains that the stock market was conceived as a risky investment, but over time it became stronger and people started to trust it more and more.
- Explains how the stock market crashed in 1929, causing panic and unneeded stress. investors turned from "bulls to bears" and sold short.
- Opines that the stock market crash of 1929 still has an efffect on the average american today.
796 wordsRead More - The Financial Roller Coastercomparative essayCurrent tallies of the New York Stock Exchange, the NYSE, have equated its assets to nearly fifteen-trillion dollars, which does not even cancel out our national debt. The NYSE was officially opened in 1792, since then many people have become extremely wealthy while some have even became extremely poor. Our country has benefitted from the stock exchanges too, by creating jobs and influencing the economy in positive and negative ways. The United States economy and the stock market seem to share many relations, such as the repeating economic cycle of thirty years; which demonstrates the upswings and downswings of the NYSE. Over the past three-hundred and twelve years the New York Stock Exchange has contributed greatly to our country, in both positive and negative ways.
In this essay, the author
- Explains that the new york stock exchange's assets have equated to nearly fifteen-trillion dollars, which does not even cancel out our national debt.
- Explains that the new york stock exchange is one of the most renowned stock exchanges in the world, but it was not the first one in america. the pse was brought about in 1790.
- Compares how the dow dropped 778 points, while the s&p 500 index fell nine percent. lehman brothers declared bankruptcy, and the nyse lost 1.2 trillion dollars in one day.
- Explains that many factors contributed to the credit bubble burst, which put the market and american economy in a recession.
- Explains that subprime mortgages target borrowers with less-than-perfect credit and inadequate savings. the federal national mortgage association (fna) began a concerted effort to make home loans more accessible to those with lower credit.
- Explains that the sub-prime mortgage movement let people that had no business buying so-called "mcmansions" buy them. people started to scratch their heads, if they had less money than the house was worth, with an inadequate job, who has had trouble with repaying.
- Explains that a large rippling effect destroyed the entire economy, including the investment banking industry, the largest insurance company, and the government mortgage lenders. bailouts are large sums of money that will keep the companies alive and allow them to still do business.
- Explains that the sub-prime mortgage borrowers were now out of work because many companies cut back on their employment. as the stock market tumbled down the slippery slope, the housing market fell over the edge.
- Compares economic recessions and downfalls to the 1929 market crash and the 2008 nyse sell off.
- Opines that the new york stock exchange has delivered profound effects on the stock market. the future of america lies in the financial backing we have.
- Cites beckman, judith s., beattie, andrew, havemann, joel, and kosakowski, paul.
1086 wordsRead More - The Stock Marketopinionated essayThe 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.
In this essay, the author
- Explains that the stock market plays a significant role in the health of the economy. in 1929, 30 billion dollars disappeared from the u.s. economy, which started the great depression.
- Compares the current market to the 1987 market, which was a minor compared to 1929's crash.
- Explains that the 20's 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.
- Explains that the economy is on a firmer footing, and since 1987's horrendous crash, much has been done to prevent another debacle.
- Explains that the new york stock exchange, which has never traded even 1 billion shares in a day, currently has the capacity to trade 3 billion.
- Opines that the booming stock market is a natural result of profound economic changes both here and abroad.
777 wordsRead More - Stock Marketanalytical essayStock Market Crash of 1929 The day the stock market crashed, October 29th, 1929, is now known in infamy as Black Tuesday. “The Reasons Stocks Crashed in 1929” by Harold Bierman Jr. says that there were many events that led up to the Stock Market Crash. On October 24th, 1929, the stock market fell 9% during the day, which was a huge deal back in that time when a lot of people had money invested in the Stock Market. After this decline there was a selling alarm, as everyone wanted to get his or her money out of the stock market.
In this essay, the author
- Analyzes how harold bierman jr.'s "the reasons stocks crashed in 1929" reviews possible causes for the stock market crash and concludes that a crash in the market was bound to happen.
- Opines that the 29th of october will always be known as black tuesday but it was not the only day the stock market struggled.
- Explains that since the stock market was viewed as an indicator of the american economy, the public's confidence in the economy shattered. between the "black tuesday" and november 13th, over 30 billion dollars had disappeared.
389 wordsRead More - Six Important Aspects When Investing in the Stock Marketopinionated essayI have been interested in trading and investing in the stock market for the past seven years. I have competed in various contests to test my strategies and have won several. Over these years, I have observed many trends in our volatile markets. News is what moves the markets. Not just local news or news within the United States, but global news will affect the markets. It is good to stay informed on the dates and times that economic news will be released. When economic news is positive, the markets will usually move upwards, most individual stocks will follow that trend. The opposite is also true. This pattern also holds true for stocks in various sectors. When biotech companies release clinical trial news, other stocks in that common sector also react. From the Yahoo message boards to analytical research data provided by companies, everyone perceives news very differently. In the stock market, emotion tends to take over where skeptical thinking should be in place. Many traders/investors make rash decisions about stocks before doing their due diligence because they are afraid of missing out on a possible great opportunity. Noticing these trends in the market can be very beneficial to the astute trader.
In this essay, the author
- Explains that they have been interested in trading and investing in the stock market for the past seven years.
- Opines that observational selection is a very common practice in the stock market.
- Opines that the appeal to ignorance tempts many traders into believing the unbelievable. the stock exploded so fast due to positive indications on a phase two clinical trial for liver disease.
- Opines that independent confirmation of facts is the most important aspect of stock trading.
1012 wordsRead More - The Stock Market Crash Began the Great Depressionexplanatory essayThe stock market is a great way to buy part of a company & gain or loose money depending on how the company is making money buy buying a share. “The stock market is owning a small piece of the company; the stock market is owning a piece of a business” (Christie 5). Therefore, investing in the stocks is a great idea when prices are high. Furthermore, it is a hard job to keep up with everything needed to know for the job. Investors and brokers are the one who do the buying and selling; “A broker is a person who buys or sells things on behalf of another, a broker who buys and sells shares is a STOCK BROKER.” (30). Working with a Stock Broker is a wise way to go when one is starting to buy and sell stocks. The brokers advise and help people find stocks worth investing in. In the stock market, people can rush to buys shares or hold back, in other words, “Fools get rich” (13) “people who knew least about the stock market have made the most money out of it in the last few months. Fools who rushed in where wise men feared to go ran up high gains.” (13). Sometimes it is smart to rush in, but the stock market isn’t like that. It isn’t a great idea to be a fool and rush in to stocks; the Roaring 20’s was an exception to this rule(most were well-to-do). The stocks help many Americans double the amount of money they have in an elaborate, fun way. The stock market helps keep many businesses around, and helps investors when they sell it.
In this essay, the author
- Explains that stock investors never thought the system would fail, but one day, the stock market crashed leaving millions without work. the great depression and america would reap havoc for many years.
- Explains that investing in stocks is a great idea when prices are high and it is hard to keep up with everything needed for the job.
- Explains that the stock market crashed between october 24 and october 29, 1929. it took many years to get used to life after the crash.
- Explains that the crash played the biggest role in beginning the great depression. people were hit fast and hard and had to sell all they owe.
- Explains that the great depression was the worst economic time for americans because of the lack of money circulation when the stocks crashed.
- Explains how the prices of everything went down so low in this depression; almost no company had enough money to keep themselves in business.
- Explains that the stock market crash began the great depression, the most economically challenged time in america. the lack of buying stocks regularly led to the less production of manufactured goods, resulting in businesses to shut down.
1194 wordsRead More