Levitt's Freakonomics Report

The intended audience of Steven D. Levitt and Stephen J. Dubner’s Freakonomics is made up of middle class Americans and comprised of adults and teenagers with a basic education and a broad knowledge of a wide range of subjects. Since Levitt and Dubner reference a large variety of topics, it is imperative for the audience to also be familiar with a wide variety of subjects or at the very least to be aware of popular culture and government. For example, when Levitt and Dubner reference a Supreme Court case, Roe v. Wade, where a young woman named Norma McCorvey was “...the lead plaintiff in a class-action lawsuit seeking to legalize abortion” they establish their audience as one that would be educated enough to know the fundamentals of some of the most important events in American history (Levitt and Dubner 5). By referencing the Roe v. Wade case, a court case which is generally considered to be common knowledge for Americans, Levitt and Dubner reveal that their audience must be comprised of

1.In the book, Freakonomics, the authors discuss about a group called the Ku Klux Klan. The KKK was very popular in the nineteenth and twentieth centuries. In the article “27 Important Facts Everyone Should Know About The Black Panthers” by The Huffington Post, a group called the Black Panthers was also popular in the twentieth century. The Black Panthers differ from the KKK in many ways, for example the Black Panthers wore black leather jackets and black berets, opposed to the KKK white sheets and hoods. A major difference between the two group was that while the KKK was hunting down black people, the Black Panthers were trying to protect the black community.Another notable difference between the two groups is that the KKK was aided by the

The field of Finance is the study of fund management and assets allocation over time, in other words, it is the money making industry. Wall Street is the base of the finance field the original home of the stock exchange. In this field, one wears a “suit” meaning a business suit to look successful and well educated. “tie” is the air of intelligence that gives you authority. The people in the finance field are mostly in stock exchange. Peter Lynch quotes “for twenty dollars I can tell you a lot of things, for thirty dollars I can tell you more and for fifty and tell you everything.”1 This quotation includes the fake lie that the stock brokers give you to invest. The more money you give the more lies you get. Therefore, the whole point of a stock broker is to get people to invest, but they cannot do it without opening the eyes of a costumer. This includes telling them a to hard to believe number which potentially can change a client point of view.

Anybody can be given the power to do their own research and become an informed investor in today’s world. As stated by Investopedia, “With the Internet, an investor can find an online company report from the Security and Exchange Commission (SEC) website immediately after it is posted. Large financial documents can be downloaded within seconds and can be searched for key words, topics or specific financial statements” (Ryan Fuhrmann, 2012). Technology has essentially made the

Observing the world around me it is clear to see the vital role economics plays in every aspect of life. A glimpse of a newspaper headline will tell you the influences that economics has on the country. This has taken me to the idea of pursuing economics in university to widen my knowledge on such an intricate subject.

Economics in reverse is the best way of describing the unconventional method preferred by economist, Steven D. Levitt. While most economists measure social situations and present the data as numbers and graphs Levitt takes anomalies within the data to reveal truths obscured. It’s Levitt’s sociological take on economics that has set him apart from his peers with his heavy focus on incentives, choices, and the consequences they have. Freakonomics mirrors Levitt’s method since it’s a collection of stories he has uncovered or read, and the core economic principles are hidden within each story throughout the book, sometimes even in plain sight like how there are exactly as many chapters as there are core economic principles.

A person oblivious to the world of business would stare at the CNN Money sector of news and would feel almost unaffected by the world’s financial movements. But you sit a businessman in front that television screen, he will watch and listen carefully to every word seeking for opportunities and to be informed on how his investments are doing. The life of a businessman or an investor for that matter, views the world differently. What the world perceives as the latest innovations, investors sees it as a life-long investment. And the importance of finding these chances and allocating one’s money correctly could not be stressed any more in Jeremy J. Siegel’s novel Stocks For the Long Run. Siegel who marks his grounds

    Today’s stock market offers as many opportunities for investors to raise money as jeopardies to lose it because market depends on different factors, such as overall observed country’s performance, foreign countries’ performance, and unexpected events. One of the most important stock market indexes is Standard & Poor's 500 (S&P 500) as it comprises the 500 largest American companies across various industries and sectors. Many people put their money into the market to get return on investment. Investors ask themselves questions like how to make money on the stock market and is there a way to predict in some degree how the stock market will behave? There are lots and lots of

Nearly three quarters of all U.S. households invest in the stock market. And half of all U.S. households invest in mutual funds—the nation’s fastest growing type of investment. Some investors are saving for a comfortable retirement, other’s for a child’s education. Whatever their goals, shareholders benefit from broad diversification, professional investment management, and ready access to their money. If one decided investing was a sound way to secure their financial future, their next step is to build a balanced portfolio by selecting an investment company and/or suitable investment types. While it may seem daunting—and even overwhelming—there is always someone who stands ready to help an investor.

The stock market has always been very important to the economy of the world. The stock market gives citizens an opportunity to get involved with small and large businesses. This paper is about my experience with investing in stocks, through howthemarketworks.com, and what it has taught me. I never knew anything about the stock market, but now I know that it is not what I thought it was.

When I dived into the field of finance, all I found was the proverbial “black box.” The financial market lacked the transparency of other disciplines and remained to this day an ever-changing field. I found the barriers to entry to be frustrating. Profitable strategies and methods were kept secret. Textbook theories that I encountered were hard to observe in the real world due to noise. But I understood the importance of the topic and its implications. More accurate models would lead to more efficient allocations and better safeguard against financial catastrophes. Thus, the desire for clearer knowledge fuels my interest in finance.

Jon was one of these would-be investors. He found internet stock trading as a way to break into the stock trading game but the game was not kind to him or his finances. In 1998, he created an account with an online stockbroker, which made trading easier. There was no consultation with a professional broker and stocks could be bought and sold at the click of a button. In addition, the stock market’s boom was kind to investors. Stocks in technology seemed to be always on the rise. Jon invested. He took three thousand dollars and invested under the impression that his money would double or perhaps triple. A mere two years later, these internet and technological companies experienced a realization.

When entering this class, I had no previous knowledge of Market Watch and the stock market. I had know idea that there were websites that informed users in stock market trends, and had tools and games to better train people in investing. My curiousness for the stock market started to grow, because I have never had the opportunity to actually buy stuff and see how it increases or decreases over time. These last few months have been full of obstacles, pertaining to my investments in the game. Overall, I ended on a good note finishing 13th among 51 players, making a little over $36,000. I invested in six very diverse companies.

How does the stock investment unit affect the student’s perspectives of investing in stocks? Through a survey I will find out how students perspectives change before and after the unit.

A sophisticated investor reads the numbers to get the true story and begins to see things that the average investor does not see. A sophisticated investor must see the impact of government regulations, tax codes, corporate law, business law, and accounting law. One reason it is hard to find accurate investment information is that to gain a full picture requires financial literacy, an accountant, and an attorney. In other words, you need two different professionals to get the real picture. The good news is that if you take your time and invest the time to learn the ins and outs of what goes on behind the scenes, you will find investment opportunities and great wealth, wealth that very few people ever find. You will find out the truth about why the rich get richer, and the poor and middle class work harder, pay more in taxes, and get deeper in debt. Once you know the truths, you can then decide which side of the quadrant you want to operate from. IT’S NOT HARD; IT JUST TAKES SOME TIME…TIME THAT PEOPLE WHO JUST WANT A HOT INVESTMENT TIP DO NOT WANT TO INVEST.”