The Stock Market's Impact on Our Lives
explanatory Essay
1369 words
Every weekday from the hours of 10am to 4pm $169 billion dollars on average trades hands from one party to another. It’s the New York Stock Exchange and has been trading stocks since 1817. The stock market has a definite impact on our lives (just ask those who lived during The Great Depression.) It is an institution that has made people unfathomably wealthy, along with impossibly poor. Today the New York Stock Exchange has over 2,300 different companies trading stock valued at just over 16 trillion dollars.
Currently there are over one hundred unique stock exchanges throughout the world. A Stock exchange provides a means for companies to raise capital through issuing stock. This process begins when a private company files to issue an initial public offering or an IPO. Often time’s companies wish to seek assistance from investment banks or other financial institutions to help get the IPO started. An investment banker looks over the company’s financial statements and records to determine what the company is valued at. Then stocks are issued to stock exchanges for investors and traders to purchase. The company raises money by selling their shares of stock to investors. The company and the investors share a mutualistic relationship as the company is in need of capital and the investors that purchased the stock believe that the company will do well and in return the stock will grow. Stocks fluctuate based off of several economic indicators. These factors include inflation, the strength of the market and competition, trends, and many more depending on what you are investing in. These factors are, for the most part, unpredictable. Even events such as a national disaster or terrorist attack can greatly impact the stock ma...
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...chnology very similarly to what educators are facing now.
The stock market; all though enticing, is no get rich quick scheme. It is a rather complex economic system that can be found throughout the world. It has seen a great deal of changes since its inception. The history of the stock market is very much like that of a graph of a stock with plenty of ups and downs. Without all of its highs and lows we would not have the stock systems we have in place today. Today we have a system where the companies and traders have a mutualistic interest; for the stocks to excel. It is the talking point of many conversations along with being subject to much speculation. Stock markets are ever expanding as more and more IPO’s are being filed. With a platform in place to allow crucial funding to corporations, the stock market is one of the most important systems set in place.
In this essay, the author
- Explains that the new york stock exchange, which has been trading stocks since 1817, has made people unfathomably wealthy, along with impossibly poor.
- Explains that stock exchanges provide a means for companies to raise capital through issuing stock. stocks fluctuate based off of several economic indicators such as inflation, the strength of the market, trends, and many more.
- Explains that the new york stock exchange was not the financial giant it is today. when it first began in may of 1792, only twenty-four brokers were allowed to participate in trading.
- Explains that the new york stock exchange has had its fair share of tragedies. the most destructive event of the stock exchange's life was the crash of 1929.
- Explains that the way stocks are being traded today is vastly different from the stock market's inception.
- Explains that financial fraud has been around for thousands of years, and the stock market is no exception. bre-x minerals committed one of the largest acts of stock fraud to date.
- Explains that high frequency traders are able to execute millions of trades in a matter of mere seconds. knight capital partners lost over $400 million in less than an hour due to an algorithm bug.
- Explains that the new york stock exchange generates money through fees. the initial listing fee ranges from $125,000 to $250,000. after the initial fee the company must pay an annual fee of $42,000 to $500,000.
- Explains that the stock market is a complex economic system that can be found throughout the world.
Related
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- The Importance Of The Stock Marketexplanatory essayHave 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.
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.
2323 wordsRead More - Time Value Of Moneyexplanatory essayCapital markets are markets "where people, companies, and governments with more funds than they need (because they save some of their income) transfer those funds to people, companies, or governments who have a shortage of funds (because they spend more than their income)" (Woepking, ¶3). The two major capital markets are stock and bond markets. Capital markets promote economic efficiency by moving funds from those who do not have an immediate need for it to those who do. Individuals or companies will put money at risk if the return on the intended investment is greater than the return of holding risk-free assets. An example of this would be those that invest in real estate or purchase stocks and bonds. Those that invest want the stock, bond, or real estate to grow in value or appreciate. An example of this concept would be if an individual or company invested an amount saved over the course of a year. While investing may be riskier, these individuals hope that the investment will yield a greater return than leaving the money in a savings account drawing nominal interest. In this example the companies that issue the stocks or bonds have spending needs that exceed their income so the company will finance their spending needs by issuing securities in the capital markets. This is a method of direct finance because the "companies borrowed directly by issuing securities to investors in the capital markets" (Woepking, ¶5).
In this essay, the author
- Explains that time is one of the most valuable assets in our lives. the paper will examine time value of money and the applications that determine successes or failures.
- Explains that capital markets promote economic efficiency by moving funds from those who do not have an immediate need to those with a shortage of funds.
- Explains the formula for computing future value: fv = pv(1 + i)n, where pv is the present value, interest rate, and n is number of periods.
- Explains that the formula for computing present value is derived from the future value formula.
- Explains that indirect financing involves a financial intermediary between the borrower and the investor. stocks and bonds represent obligations on the part of issuers.
- Explains that interest rate is the cost of borrowing and is usually expressed as an annual percentage of the principal. the real rate of interest is determined by the supply and demand for loanable funds.
- Explains that time value of money is the basic concept applied by various governmental, financial and investment institutions and companies in valuing securities and capital investments.
1709 wordsRead More - Stock Marketexplanatory essay1929 Stock Market Crash On October 3, 1929 The Dow Jones started to drop from a recent high of 381. The average of the Dow Jones then kept dropping throughout the week of October 14. The night of Monday October 21,1929, margin calls were heavy, and numerous Dutch and German sell calls came in overnight for the Tuesday morning opening. On Tuesday morning, out-of-town banks and corporations called in $150 million of call loans, and Wall Street was in a panic before the New York Stock Exchange opened.
In this essay, the author
- Describes the 1929 stock market crash. the dow jones started to drop from a recent high of 381, and continued dropping throughout the week of october 14.
- Describes how the new york stock exchange began selling stocks on october 24, 1929, and the dow jones industrial index closed at 299 that day.
- Explains the causes of the stock market crash were overpriced stocks, margin buying, federal reserve policy, and public official's repeated statements.
- Explains that the stock market crash caused production to fall by nearly 50 percent from the business cycle peak in august 1929 to the trough in march 1933.
533 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 - Great Depression and the Stock Marketexplanatory essayIn the 1920's, the economy of the United States dramatically increased. World War I had ended
In this essay, the author
- Explains that in the 1920's, the economy of the united states dramatically increased. world war i had ended and leftover products, like steel, could now be sold to consumers.
- Explains that the economy was booming and it showed no sign of slowing down in 1929, but the stock market suddenly took a turn for the worst and crashed, leading to the great depression.
- Explains that herbert hoover, coolidge's secretary of commerce, took over as president in 1928. his compassion for the poor and economic knowledge led him to be declared the best qualified president of the 1920s.
- Explains that william c. (billy) durant was a buisnessman born in boston in 1861, who took over the carriage making company in flint, michigan. he later added three more motor companies to it, creating general motors.
- Explains the idea behind the stock market: money is needed to buy items like machines and builings, called capital. corporations pay the capital by selling stocks, or parts of their company, to investors.
- Explains that 1929 was a good year for the economy, but there were warning signs that the stock market was going to crash. when the demand for products declined, the stocks that investors had bought declined in value.
- Explains that the united states loaned billions of dollars to europe after world war i to help rebuild their economy, but investors took back their loans to invest in stocks instead.
- Explains that the federal reserve tried several times to reduce speculation in the stock market, but the public ignored their warnings and criticized them for intervening.
- Explains that the stock market reached its peak prices on september 3rd, but didn't rise again and a worried wall street raised the interest rates. at the beginning of october, the market dropped again.
- Describes how investors were forced to sell their stocks to pay off their loans. the new york stock exchange didn't open until ten'o'clock in the morning and the halls were packed with speculators.
- Narrates how the new york stock exchange went on a chaotic selling spree on monday, despite hoover's attempts to stop the panic.
- Explains how the stock market never sprang back up after the horrific tuesday crash. millions of investrors went bankrupt, including will durant.
- Concludes that overproduction before the crash had decreased the value of products and many workers weren't needed anymore for production. the stock market crash left families with no income and poverty spread through america.
- Narrates how president hoover was blamed for the stock market crash in a day. roosevelt easily won because the republicans were now
- Explains that the stock market crash of 1929 was a factor leading to world war ii. german investors pulled their loans out of to buy stocks in the market.
- Explains that the stock market crash of 1929 was a very important event in the united states history. it caused the nation to go from the "roaring twenties" to the great depression.
1945 wordsRead More - Causes Of The Stock Market Crash And Depression Essayexplanatory essayThe stock market crash that occurred on October 24, 1929 sent the United States into a depression. There are multiple cause of the crash and depression and can only be blamed on the government and citizens. The crash created Black Thursday, marking the day that stock market prices plummeted. The crash eliminated about ten billion dollars in value, a huge loss for America’s economy. To try and fix the problem, J.P. Morgan and Company gathered and agreed to give twenty million to buy stocks to get the market running again. The stock market crash had many causes, a few include growth in bank credit and loans, the past actions of President Harding, and rapid expansion the country was not ready for.
In this essay, the author
- Explains that the stock market crash that occurred on october 24, 1929 sent the united states into a depression and can only be blamed on the government and citizens.
- Explains that credit allowed middle and even lower class citizens to obtain a desired item and pay later. companies were making big money and created huge revenue from families shopping sprees.
- Explains that warren g. harding became president in 1920 and disappointed many by his actions that caused controversy. he believed in the return to normalcy and proposed this in his campaign.
- Explains that the buying of big home appliances caused companies to over-produce to keep up with demand. the farmers that bought land on credit were left with too much land and debt
- Explains that the stock market crash of 1929 led to the great depression, which lasted about a decade and was filled with unrest.
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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 - Black Tuesday: The Day the Stock Market Droppedanalytical essayThe stock market crash during the 1920s, stock prices far exceeded their real value. Many stock buyers bought stock on boundary, or on money borrowed from the stock brokers. When stock prices fell many investors with margin accounts were forced to sell, driving prices down even further. Stock prices began to fall in September 1929, but in October 29 so called “Black Tuesday”, was the worst day in stock history, the stock market on that day, the prices drop dramatically. When the economy collapsed with it, people everywhere lost their jobs and homes. And in the nations Dust Bowl, sharecroppers had to leave the lands that their families had worked for generations. The stock market crash includes bank failures, factory closing, rising unemployment, decline in spending, a fall in farm prices, prices of farm products also fell sharply economic losses were aggravated by a drought.
In this essay, the author
- Explains the stock market crash during the 1920s, when stock prices far exceeded their real value. when the economy collapsed with it, people lost their jobs and homes.
- Describes how the stock market soared during the 1920s, when ordinary people invested their life savings and borrowed money to buy shares. the great depression was the time of great economic hardship.
- Analyzes how herbert hoover urged americans to be patient when the stock market crashed in october 1929. he took steps to fight the great depression with public works programs, but people blamed him for the hard times.
- Explains that the new deal had three main goals, relief for the unemployed, plans for recovery, and reforms to prevent another severe depression.
- Explains how the price of food began to drop after world war i causing dramatic effects on the united states economy.
881 wordsRead More - The Stock Market Crashexplanatory essayThe Stock Market Crash The nineteen twenties were a time in this countries history of unbelievable prosperity. The stock market was going through the roof, stocks doubling in price, prosperity was everywhere, and America seemed to have the formula for exceptional success. Billions of dollars were invested in the stock market as people began to squander money on the rising stock prices and buying on margin. . The stock market was controlled by professionals that worked for large firms who had good financial backing which made it easier to use the market advantageously.
In this essay, the author
- Explains that the stock market crash was a time in america's history of unbelievable prosperity. it was controlled by professionals who worked for large firms who had good financial backing.
- Explains that the new york stock exchange crashed on october 24, 1929, indicating the end of the "roaring twenties" and the great depression.
- Explains that investment during the 1920's was based on margin buying. investors bought borrowed money from their brokers, who went to the banks for that money.
- Explains that america's slowing economy led to a downward spiral of consumer demand for goods. radio and television production didn't continue to rise in sales.
- Explains that the 1929 crash brought the roaring twenties to a premature end, as those who had put their trust in the strength of the economic system lost everything.
- Opines that the 1929 stock market crash was blamed on president hoover, brokers, bankers, and businessmen, but the cause of the great depression could not be attributed to one individual or a group of people.
- Explains that the us passed many additional laws during the 30's to prevent a stock market crash from re-occurring, providing much greater protection for investors.
- Explains that many of the causes of 1929's crash are now illegal. commercial banks are no longer allowed to invest in stocks, the federal reserve has increased power over interest rates, and the exchange act of 1934 regulated stock market trading.
635 wordsRead More - Causes And Effects Of The Stock Market Crashexplanatory essayBeginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression.
In this essay, the author
- Explains the economic causes and impacts of the stock market crash of 1929 (fall 2012) - historpedia.
- Narrates the social welfare history project's "the new deal".
- Explains albert blog's "the ultimate ap us history new deal programs list."
- Explains that the stock market crash caused damage to the economy and lifestyle of the country, ending with recuperations from the depression.
1065 wordsRead More