2431 Assignment2 Essay

_____ Psychology and "common sense" lead to the same conclusions about behavior and mental processes.

The Stock Market Crash occurred on October 29th, 1929. Wall Street got struck on Black Tuesday when, on the New York Stock Exchange, investors traded 16 million dollars worth of shares in one single day. Billions of dollars were cut, destroying the investments of thousands of investors. After the event of Black Tuesday, America’s industrial world spiraled downwards into the Great Depression. This was the most powerful and extended economic breakdown in the history of the Western Industrial world up till then.

The majority of people started selling their stocks and brokers sent out margin calls. People throughout the country watched the ticker (stock pricing machine) as the numbers meant their fate. The prices were falling down so quickly that the ticker fell behind. Stunned at the sudden crash, a crowd gathered outside the New York Stock Exchange on Wall Street. Rumors spread that people were committing suicides, but none of them was true. It was a great relief when the panic decreased later as the day progressed. Large sums of money were invested by group of bankers just to convince others to stop selling their stocks. By the end of the day, people started buying stocks at “bargain prices.” On October 24th, double numbers of shares were sold, breaking the previous record. The stock market fell again four days later. An unexpected drop in the stock prices through a large section of the stock market is called a stock market crash. Usually during high economic periods, become greater than their original value, but if this fades; then the market investors would have to sell their stocks at a lesser value. As the stock prices decline, panic sales can set in causing the market to

Activities that are not suitable for some residents. Base some activities around the residents. Have easier yet ideal avtivities such as reading or some sort of physical activities to keep them fit.

Signs and symptoms of neglect by others: Dirty or unkempt appearance. Not assisting with personal hygiene. Malnutrition not providing food fluids and warmth. Deteriorating health. Unexplained weight loss. Not giving individual prescribed medication. Not respecting the individuals privacy and dignity

The stock market crash of 1929 was a four-day collapse of stock prices and the worst decline in U.S. history. Though there have been more market crashes since, with bigger losses, none have rivaled the panic the country experienced during this time. It destroyed the public’s confidence in Wall Street and helped lead to the Great Depression.

Some didn't learn from this stock market crash and let another crash occur October 19, 1987 in San Francisco though it didn’t have the same aftermath of the crash of 1929 it did begin a new era of volatility. The Americans that were affected by the crash of 1929 called

Though a study of cycles offers the trader a broader picture of the stock market’s performance during various periods, it is difficult to place trades based on these numbers alone.

So, you might think, how would these stock markets crashes have occurred? Since massive fraud, illegal activities, programmed trading could be some of the main causes of stock crashes. None of leading economic analysts has figured out yet after 75 years. But, number of analysts tried, why and how it happened. They figured out that in past and in future there are number of parameters can

An unfortunate tragic event occurred in the United States. It happened on September 11th 2001 in New York City. The World Trade Center bombed by terrorists from the Middle East. This was a turning point for the United States and the stock market, especially Wall Street. During the after math of the bombing, Wall Street had decided to close the market completed until New York could recoup from this devastating event. People were frightened, petrified to go out after what just happened in the heart of New York City. This eventually would lead up the Housing Market.

As indicated by the case study S&P 500 index was use as a measure of the total return for the stock market. Our standard deviation of the total return was used as a one measure of the risk of an individual stock. Also betas for individual stocks are determined by simple linear regression. The variables were: total return for the stock as the dependent variable and independent variable is the total return for the stock. Since the descriptive statistics were a lot, only the necessary data was selected (below table.)

Second, research on Flash Crash stated that HFT has the impact to create irregular volatility because HFTs sold the S&P 500 stocks which E-Mini was linked and reinforced the illusion of event to scared fundamental buyers out of the market. Under normal market conditions, HFT decreases a short term volatility by making it possible to buy and sell without significantly altering prices. (Prewitt, 2012). In addition, Brogaard showed HFT data from 120 US stock from the period 2008 to 2010 that high levels of HFT performance led to lower volatility, but Foucault et al. conflicted that investors provide more stock market volatility when they have faster access to news. (Manahov et al, 2014).

In selecting the data to calculate for the volatility, we did recognize that using the daily stock prices from 16 to 19 Oct 1987 (Exhibit 7) should be problematic with the stock market crash. As the Black-Scholes model assumes a lognormal distribution of volatility, using the Black-Scholes model to process this set of extreme data would lead us to the assumption risk, which is the risk that the Black-Scholes is inappropriate to be used to value options for the period. Alternatively, we considered about avoiding the crash period by only using the data before or after the crash (i.e. from beginning of Oct to 16th or from 19th to the end of the month). However, as we only have one month data on hand,

- To investigate the impact of the day of the week‘s evidence for the Efficient Market Hypothesis

Political factors and macroeconomic indicators have earned an ever-increasing academic and public attention in influencing the financial health of a country since last few decades. The stock market performance is not an exception. For instance, two major political events, the ‘9/11 attack on the USA’ of 2001 and the ‘Arab spring movement’ in 2011 had down-turned the stock market performance markedly, signalling the compelled importance of investigating the impact of political conditions on stock market activities.