The Price Of The Stock Market

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These sentiments, as so dramatically expressed by an average American day trader, are endemic among the men and women who endeavor to navigate the daily volatility that roils the markets. As the demand for instantaneous results and better returns at less cost rises, investors’ traditional reliance on stockbrokers is waning, albeit slightly. The resulting stress from this shift in responsibility from the broker to the individual is not always obvious, but almost certainly inevitable. The stakes seem raised when any loss or gain comes as a direct result of the investor’s own actions. Instability in the markets often fuels a dizzying ride of ups and downs, and their commensurate emotional highs and lows. Nevertheless, over the past decade,…show more content…
In 1971, the situation improved when America’s first virtual stock exchange, or NASDAQ as it is commonly known, was created. Although its potential was not immediately recognized by the average American, NASDAQ’s implementation created a whole new world of investing for the small investor. Arguably the most notable of these historical financial changes occurred in 1975, when Washington deregulated commission rates on brokerage accounts. The Securities and Exchange Commission (SEC) deemed standard commission rates to be illegal, and the result was that discount brokers could offer reduced commission rates. Prior to the SEC’s ruling, commission rates were fixed at one percent. This shift in power opened a clear pathway for personal financing to develop, as competitive rates offered investors more options. Since 1975 to the present, the evolution of the markets has quickened and day trading has taken off, particularly in the last decade. Day trading is now so popular that it has become a way of life for many Americans and often consumes almost every aspect of daily life. Although this new found independence may be viewed by many as a good thing, it is hardly recommended for the faint of heart. The SEC warns that, “Day trading is an extremely stressful and expensive full-time job. Day traders must watch the market continuously during the day at their
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