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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
WHEN: They were founded in 1949, but the Hermens actually started the company in 1897
Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing
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
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.
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 Boston Beer Company is able to obtain relatively low-cost funds for their working capital and expenditures. The company is constantly in search of the lowest cost items without suffering the quality of their products. The company has thrived and has been able to expand to become successful due to their ability to achieve this.
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.
“One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It's your window into a very large world,” Ron Chernow once said. The stock market is undoubtedly an incredibly important economic feature, one that our modern world depends on. Indeed, the stock market is so integral to our life today that it can serve as a valuable tool where financial literacy is concerned. Two of the most important financial lessons that the stock market teaches are financial literacy terminology as well as a historical understanding of stock market institutions. The Stock Market Game simulation serves to teach these lessons in a secure environment, 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”).
For one of my selections for buying stock, I invested into Starbucks, this company has attracted me with their wonders of different coffees, and I knew many others were interested in the very popular coffee company. Starbucks all started in 1971 in Seattle, Washington. With three men, Jerry Baldwin, Zev Siegel and Gordon Bowker, each of them put in one thousand three hundred and fifty dollars along with a barrowed five thousand from the bank to start up their small coffee shop in Pick Place Market, which is located in downtown Seattle. The name for this company was inspired by the character Starbuck from Moby Dick. This character was a coffee lover.
in 1967. The company has lived with the changes that have occurred within and around it. Through the
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.
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.