The Stock Market

1416 Words Jun 2nd, 2015 6 Pages
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 into a better perspective, it could also be seen as a horse race where you can place your bets on a certain company that you think will win. Sometimes, winning the bet will be caused by luck but in most cases, winning consists of observing past trends in the company’s performance and taking into account any current problems in the world that may effect their ability to function well. If by chance, your chosen company wins, you receive your initial amount of money you put forward plus the extra money you made from betting. But if your company loses, it’ll result in a loss of both the money you betted and your initial amount of money.

Before a business is able to be a listed on the stock market, it must first become a corporation, which is…

More about The Stock Market

Open Document