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History of stock market
History of stock market
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Many people starting in the stock market think of it like gambling, sometimes you win and sometimes you lose. Worst off, if a recession comes and brings down the value of stocks it will be like 1929 when the stock market crash that started the Great Depression that lasted almost an entire decade. Stuff like that sounds really scary that one moment you could be out on the streets with no home. But then there are people who made it big in the Stock Market like Warren Buffett who has $60,000,000,000 worth invested that he can pull from any time he wants, now that’s a nice college fund or retirement. The Stock Market can be a risky game but investors over sea even invest in our stock markets instead of from their own countries. The reason why they invest here is because America has always had a knack for making big business, America is a growing country and when you make it in this country you really make it big and pretty fast as well. Like the article titled “The Tim Grittani Story: How a 23 year old turned $1500 into $128,000 in 1 year”, Tim Grittani was a 23 year old man who invested only $1,500 and came out with $128,000 in a single year; Now that’s the difference between a nice new car and a 15 year old car. As a matter of fact recently the Stock Market has hit an all-time high says Jamie Sturgeon of Global News, and the date of this published document was November 18, 2013 to give you an idea how great the market is at this time. Now if you a smart investor you would have invested a few years ago when we were in a recession, then you value in the Stock Market would have skyrocketed. You might not be sitting at home typing this paper now if you did, you might be making investments on companies you see a potential growth in and ... ... middle of paper ... ...y can get into it, can also be a great way to make your bank balance look large very quickly. The Stock Market is a financially smarter choice when considering alternative savings accounts, or CDs (Certificate of Deposit). The Stock Market will drop, it dropped about eighty-four years ago. If people had money to invest in the Stock Market at that time they would have been very rich when the market came back when World War II jump started the economy around the year 1939 when European countries started trading with America for supplies. Just remember, when the stocks start falling don’t sell it in a panic, hold out until the Stocks come back up then sell them to make a profit. Investing in the Stock Market can be tricky but once you have mastered it, you can then master your financial status and never worry about retirement, college fund or any other accidents again.
You might be tempted to dip into your retirement fund for a major purchase, find the will to resist. You’ll pay extra fees and taxes, and you are robbing your future self. If you leave it alone, your money will continue to grow year after year. Your gains can be reinvested and you’ll earn more than you would have with just a small chunk of
The United States signaled a new era after the end of World War I. It was an era of hopefulness when many people invested their money that was under the mattresses at home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long-term investment because the boom changed the investor’s way of thinking (“The Stock Market Crash of 1929”). The Stock Market Crash of 1929 was a mass hysteria because of people investing without any prior knowledge and the after effects that eventually led to the Great Depression.
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
A rapid increase in stock prices is the origin of a stock market collapse. When stock prices swiftly rise, the U.S. dollar is overvalued. Investors are more confident as stock prices continue to rise and are more apt to do whatever to get more shares. This act of desperately buying more shares proved to be catastrophic in 1929 right before the Great Depression. According to Pettinger (2017), “In the years leading up to 1929, the stock market offered the potential for making huge gains in wealth. Prices were not being driven by economic fundamentals but the optimism/exuberance of investors” (para. 4). This proves that the stock prices were not exactly worth what was being advertised and suggests that when stock
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.
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
In October 1929, the United States stock market crashed due to panic selling. This crash started a rippling effect that contributed to a worldwide economic crisis called the Great Depression. This crash was such a shock because of the economic expansion of the 1920’s when the Dow Jones average reached an all-time high of three hundred eighty one. The year 1928 was a time of optimism and the stock market had become a place where everyday people truly believed that they could become rich. People everywhere were talking about the market and newspapers were reporting stories of ordinary people such as chauffeurs, maids, and teachers making millions off the stock market.
“What makes the stock market risky?” is what you are probably asking. Well, my answer would be that the stock market is consistently going up and ...
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”).
If the world, consisting of the consciences of over six billion people, wants the market to grow, then the market will grow. With international interest and knowledge, we can eliminate fraud and stock pooling to raise stock prices. The markets will be more honest, and they will grow at a rate that we need them to, in order to continue with our exceptional economic growth rate.
As an investor with several types of securities, I am looking for long-term stability towards a retirement fund. The combination of several different stocks and mutual funds allows for the safety of the investments. By investing long-term in different accounts, I have the ability to gain more in the long-run with less risk of not lose all my savings on one investment.
In turn everything in the present and the future is judged through the stocks as they hold a high importance in industrialized economies showing the healthiness of said countries economy. As investing discourages consumer spending over all decreases, it lead...
We analyzed the market for two weeks to determine when the equity market would turn from a bearish to bullish market. Without a change in the market and a declining bond price, we decided to invest in equities according to our investment strategy, which brought us into the second phase of our portfolio. Therefore, at the beginning of February we bought shares in Sirius, Microsoft, Neon, Washington Mutual, and Nike. As assumed, the equity market continued to plummet decreasing the value of all our stocks except for our Gold Corporation stock.
Personal financial planning eventually leads to secured retirement years; this is the purpose to plan for the future. With a volatile and erratic economy, and social security benefits undetermined in regards to having enough money to comfortably survive after retirement is critical. There is no magic ball to tell us what the coming years will bring; this is why it is up to each individual to have their own financial lives under control. Having a concrete financial plan now will secure an increased comfortable future.
Japan has one the most advanced economies in the world, with an advanced economy comes an advanced equity market. As other advanced equity markets are, the Japanese market is similar to the U.S. in its essential functions and its operation by the exchanges that allow its existence. The Japanese stock market is third largest in the world by market capitalization, surpassed only by the United States and China. Market participants trade over the Tokyo Stock Exchange and the Osaka Securities Exchange which combined to form the Japan Exchange Group (JPX) in 2013 (JPX.com). As of November 2015 there were 3500 companies listed as part of the JPX and over $400 billion dollars of shares traded in 2014 (World Federation of Exchanges).