A Good Stock Market Crash

3.) In conclusion, buying stocks now can make a poor person very wealthy in years to come given proper research and the tools to do so.

As an investor one needs to be immune to the emotions of greed and fear. In a bull market people fall victim to greed. They are afraid that if they don't sell

While there may be some arguments among historians, speculation is obviously one of the major causes of the Crash. Speculation (In the context of the stock market) is the buying of stocks with the purpose of profiting not from the dividends that the stock pays, but by the fluctuations in the price (Axon 31). Speculation is often looked down upon by the market as a profession, as it is seen as a form of gambling with possible serious repercussions. The secret is that speculation is actually

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

The far majority who invest in the stock market or a type of security hope that their investment escalates in value or price. However, others execute investments based on the opposite taking place; they hope that the price of the security declines. These investors are practicing short selling. Numerous renowned examples of short selling exist, one of which, the shorting of mortgage backed securities during the real estate bubble in 2008. A number of critics find short selling unethical while others feel it necessary to maintain a balance in the market.

everyone should know that if there is a crash with money, something severe is going to happen.

First signs of economic trouble were shown when steel production, house construction, and car sales went down in early 1929, but very few people noticed this as a problem at the time. In March of 1929, the stock market did have a small crash, but Charles E. Mitchell essentially stopped the crash by continuing to loan out money even though many broker were issuing “margin calls. After Mitchell’s actions the stock market began to climb once more. Some economists were giving warning of a possible crash in the future, but they were all dismissed as many people did not want to believe it, especially with the price of stocks soaring shortly after the small crash. However these few economists were right about a future crash, throughout the month of September stock prices fluctuated and eventually crashed on Black Thursday (October, 24, 1929).

It is often said that perception outweighs reality and that is often the view of the stock market. News that a certain stock may be on the rise can set off a buying spree, while a tip that one may be on decline might entice people to sell. The fact that no one really knows what is going to happen one way or the other is inconsequential. John Kenneth Galbraith uses the concept of speculation as a major theme in his book The Great Crash 1929. Galbraith’s portrayal of the market before the crash focuses largely on massive speculation of overvalued stocks which were inevitably going to topple and take the wealth of the shareholders down with it. After all, the prices could not continue to go up forever. Widespread speculation was no doubt a

““The name of the game, moving money from your clients pocket to your pocket”, Mark stated. “But if you can make your clients money at the same time it’s advantageous to everyone, correct?” “No, Mark replied…Okay, first rule of Wall Street-nobody and I don’t care if you are Warren Buffet or Jimmy Buffet- knows if a stock is going up, down or sideways, least of all stock brokers. But we have to pretend we know.”” (8)

Currently share market is well known to all. It is known that the economic stability and prosperity of a country depend on the condition of her share market. Many brokerage houses are now operating in our country to help investors. When Bangladesh economy looks like a good shape based on capital/share market, that time Trading on the Dhaka Stock Exchange index was halted after it fell by 660 points, or 9.25%, in less than an hour. Chittagong Stock Market also met a similar fate. An abrupt crash of the market sparked violent protests from the Bangladeshi investors. It was the biggest one-day fall in its 55-year history. It is estimated that over three million people - many of them small-scale individual investors - have lost

In regards to investing in stocks, bonds, currencies, or other investment products, it has always been a normal emotion to be happy when a stock price rose and upset when a stock price fell. Yet for Warren Buffet and his team at Berkshire they welcome these declining prices because of the opportunities it brings. According to Warren Buffet, a true investor would be buying stocks and businesses for their entire life, and “with these intentions, declining prices for businesses benefit us, and rising prices hurt us.” Understanding that the investor is going to be a buyer for eternity an investor should

The Stock Market is a vast and confusing setting. It has influence on many aspects of the economy like pensions, bond markets, and even retirement accounts. However, many aren 't educated about how the Stock market works, how it affects the economy, the difference between stocks versus bond and mutual funds, nor the amount of illegal activities taking part within the stock market.

| Stocks are a liquid asset, easy to buy and sell. High profits it stocks go up

1) Short selling a certain amount index fund, for the case is the QQQ, an ETF which tracks on NASDAQ.

You also need to understand how they were short, and how they were funding their short position).