The Impact of Stock Market on Financial Investors

658 WordsFeb 17, 20183 Pages
The stock market has been a huge part of financial investors for a long time and will continue to be for quite some time. At one point in time during our history we had a crash in the stock market. Almost everyone took a huge hit from this crash. The stock market is a part in everyone’s life whether a person invests in the market or not it has an impact on how we as people spend money and invest. A stock market crisis could be detrimental to our country. The stock market is a huge part of the world’s economy. It isn’t just United States companies you can invest in, you also can invest in foreign stock markets. The options are limitless to what you can invest in. Although, putting your money towards a stock always has a risk. The basic way stocks work are that a public company issues you stock and you buy them at the market value. When you buy stock you become a shareholder, a partial owner in the company: “When you own a share of stock, you are a part owner in the company with a claim (however small it may be) on every asset and every penny in earnings” (CNN Money 1). Having ownership in the company is what makes stock worth money. If the stocks you purchased didn’t give you any share in the company they would be worthless. The risk of stocks are what drive us as consumers and savers to buy the stocks. With a higher return on average than bonds or a certificate of deposit in today’s economy stocks are a good way to lean if you are saving for retirement or just
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