The Stock Market

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The state of the economy today is determined by many factors including overseas trade, employment rate, the needs and wants of consumers and namely, the Stock Market. The Stock Market is nothing more than a global network of organised market places where everyday large sums of money are moved across. As of 2013, over $85 trillion AUD (or €60 trillion) are traded in the Stock Market. This amount of money is more than the cost of all goods and services in the entire world economy. However, this is just a simplified statement. In truth, the Stock Market is a highly complicated concept that can be affected by many external problems or cause its own problems such as a rise and fall in stock prices and financial crises. To put the Stock Market…show more content…
Also, if you happen to lose the case you are at risk of losing everything you own in it as well. This is another reason why corporations exist. They are there to limit the legal responsibility of the owners, but to a certain degree. If the corporation does get sued, it’ll be the corporation that has to pay whatever amount is owed. Not you. In a worst-case scenario, the corporation may go out of business. This is because unlike businesses and sole traders, where you and what you own are the same person, a corporation and its owners are different people. After the process of incorporation, companies must be large enough and give proof that they have been performing well for some time before they can be listed. Once the company is listed, they will have to follow certain rules, such as warning investors about any risk of financial loss, letting the public know about anything that might change their choices to purchase shares and to update investors with the current performance of the company. The cycle of the Stock Market begins with someone who wishes to make an investment with his or her money by purchasing securities. Securities grant a part of the ownership in a company, which could be also called a share. They do this so that in return the person can have a financial gain made from earning more money than from the amount used to purchase the shares. This is also

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