The Stock Market
We've all heard of the stock market, even if we may not invest in it directly ourselves. The stock market is where company stocks, known as shares, are traded along with other securities and bonds. Stocks represent value in a company and like all values; this fluctuates based on the performance of the company, the market and the economy in general. While most countries operate their own stock exchange markets, some well known international markets include the New York Stock Exchange (NYSE), the NASDAQ, the London Stock Exchange and the Paris Bourse.
The stock exchange offers people several key advantages when it comes to buying and selling shares. Firstly, it eliminates the need to travel. Before today's technological advances, people wishing to invest had to travel to specific stock exchanges to purchase their shares in person. Today, you can invest in an international stock exchange and gain shares automatically.
Secondly, due to the fact that all trading occurs in one place, the price of each stock is always current. This allows you to track the price of your stock from minute to minute and recognize the best times to buy and sell. You can also gain firsthand knowledge of the factors influencing the price of your shares, for example, company performance and fluctuating market trends.
We've all heard of people who have won and lost money on the stock exchange. But what effect do changing conditions have on share prices? In 2005, shares in the online gambling industry soared when several large companies entered the London Stock Exchange. However, their share prices were hit significantly just over a year later when the U.S Congress introduced legislation banning American players from spending money at online casinos. Many people with shares sold them immediately after the news became public. As a result, the market was flooded with a surplus of online gaming shares and the value of many companies declined overnight.
However, despite the risk, investment in stocks remains high. Stock markets offer exciting investment opportunities and many people have become wealthy from holding the right shares at the right time.
For more infomation on economics choose from the list below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
|
