"The Internet’s Impact on Stock Trading"
Before the internet, stock trading was done exclusively through brokers. Now that computers and technology have apparent strongholds in the realm of stock trading, more people have access to the market. This essay shares some experiences that online stock trading services and day traders have had due to the radical movement of online trading. The essay commences with a fictional anecdote that describes one man’s unfortunate experience through online trading. It then moves to some non-fictional examples. One company was forced to leave the prospect of trading behind and had to close its services. Another has found refuge in expanding its holdings by moving its primary focus away from
…show more content…
But soon, many investors would realize that this wasn’t the case.
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.
They were vulnerable to an economic decline. In March and April of 2000, the technology boom was no more. In fact, it imploded: it collapsed in upon itself. Investors are still trying to quantify the damages and costs. Jon’s small portfolio was at the mercy of the technology implosion. He too became a loser in the investing game. His family savings was not doubled as he hoped, but rather, worth only a couple hundred dollars. Now, he is not sure where to turn: “I thought I had made the right decision. I saw an opportunity to help my family and our financial status and jumped on it. I never saw the true risk involved. Technology was hot. Who could
In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700's where stocks were already around for a long time before that but it wasn't really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders.
In 1938, and in the teeth of the longest and fiercest depression that the United States had ever known, capital spending hit an all time high. That’s right! In 1938 the men who owned America began to pour millions of Dollars into new plant and equipment as if there was no tomorrow. We don’t think much about it today, because it has been a long time since the United States has experienced a real bone jolting economic slowdown. The fact is, however, that the very best time for the industrialist to invest in new technologies is in the middle of a depression. This is because it is at such times that labor, raw materials, and new equipment can be purchased at rock bottom prices. Henry Ford may have jumped the gun a bit. He shut down his River
The stock market has always intrigued me and I have since been eager to learn more about it. Starting back in January of this year, I ordered three textbooks on stock trading to become more informed on the subject. After reading these books, I gained further insight on stock trading which led me to open my own brokerage account where I could buy and sell stocks. I started by playing a stock simulation which was very similar in concept to StockTrak, a program we used in this class. I found that this helped provide me with a hands on experience which helped familiarize me with stock trading and learning how to manage and use my money efficiently. I continued to play this simulation for about two months and during this time my portfolio grew about 4%, which provided me a confidence boost and motivated me to invest in my real money into the stock market. In March of 2015, I officially began trading in the stock market and I continued to learn along the way. As of now, I have roughly nine months of stock trading experience. As stated previously, I have always had in interest in the stock market, but I never acted upon it until as recently as earlier this year. My interest in the stock market was peaked because I enjoy taking risks and the stock market
For many people, the star market is a popular method for obtaining money quickly. Despite the risks, many people invest their money in stocks. The stock market allows the public to buy shares of a company, or a stock. These shares come in the form of an official document, and grants you a small fraction of the company you invested in. As companies do well, their stocks are worth more. Stocks can be bought and sold through the help of a stockbroker. The goal is to buy a share of a company, then later sell the share for more money than you bought it for. However, the market is risky; this is proven by multiple crashes in the market, resulting in loss of money.
The stock market is a risky business. Investing can make you wealthy beyond your wildest dreams, in which only a few investors have found the formula. Otherwise making the wrong decision
The stock market is a great way to buy part of a company & gain or loose money depending on how the company is making money buy buying a share. “The stock market is owning a small piece of the company; the stock market is owning a piece of a business” (Christie 5). Therefore, investing in the stocks is a great idea when prices are high. Furthermore, it is a hard job to keep up with everything needed to know for the job. Investors and brokers are the one who do the buying
Computer related High-Tech companies were largely responsible for the revival of the American economy during the 90’s. Gross domestic product by the end of the nineties was growing at a rate of 4%, far above historical lows from the seventies. Wall Street provided the most visible signs of the new prosperity. With the Dow Jones average increases of fourfold between 1992 and 1998 combined with NASDAQ’s increased values, the total increases reached $4 trillion in value which represented the largest accumulation of wealth in history. Of course, the few wealthiest Americans reaped the largest benefits but the middle class benefited as well through new investment vehicles such as mutual funds represented largely by 401K investments. Additionally, these new economic trends propelled by the “information society” came to effect many other industries not all of which were positive. For example, online shopping contributed along with other factors to cause the death of the mall. The phenomenon of Dead Malls began in the 90’s and have had devastating effects on owners, communities and
The purpose of The Stock Market Game is to help students experience firsthand the unpredictable reality of the stock market without risking actual money as well as the consequences of a failed investment. Through this wonderful resource, students are supplied an equity of $100,000 and provided the liberty to make their own decisions by performing a variety of trades such as buying and selling stocks in real time, just as they would in the real world. This game engages students of all ages in the vast world of finance, therefore providing them with an opportunity for a financially successful and independent
With the correct tool and adequate knowledge, the internet offers tremendous financial potential to everyone. Did you know that the internet is one of the most reliable ways in which you can get wealthy over a very short period of time? Although online trading carries a substantial amount of risk, it is one of the few modern business types that can elevate you to a wealthy level within the shortest time possible. After all, is it not a fact that the riskiest businesses are also the ones with the highest returns?
On May 17, 1792 24 stock brokers signed the Buttonwood Agreement on Wall Street in New York City under a Buttonwood tree. The agreement formed a centralized exchange that eliminated the need for auctioneers. It also set up rules for the trading of public bonds that were used to pay for the American Revolution. In 1817, a formal organization was setup and named the New York Stock Exchange & Board. In 1863 it was renamed the New York Stock Exchange and in 1903 it moved to its present headquarters at 18 Broad Street.
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.
Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi.
The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the world’s foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today.
From September 3rd, 2015 to October 28th, 2015, our group was given the opportunity to manage an investment portfolio, with the goal of maximizing the value of the portfolio through acquiring, holding, and selling stock. The beginning cash balance of the portfolio was $100,000, and our group had the ability to make up to 500 trades. During this time period, our group made 20 stock purchases and sold stock twice. At the close of business on October 28, 2015, the value of our group’s portfolio increased from $100,000 to $106,785.33, yielding a return of 6.78% (((106785.33/100,000)-1) x 100)). In comparison to the S&P 500 returned at 7.16% and the Dow Jones having a return of 8.65% (Yahoo).
Just after the student decided what he wanted to invest; He invested a small amount of money to prevent a big loss. The first investment was made in a mutual fund; This kind of stock grows slow, this makes them easier to manage and safer. The student invested $2,000 in a company called ‘American Funds Euro Pacific Growth A (AEPGX)’. It is a company that helps small businesses to growth; according to the charts the student thought it was a good idea to start investing in this company, since it is a long term the price of the stock rises or decreases in a slow rate.