The Stock Market is a Necessity Essay

The stock market collapse was one of the most important events, in the country economy during 1929, which led the Great Depression. Before October 29, 1929, most Americans believe that stock was the key to success and fortune. John T. Raskob affirms his belief that everyone could be

During the 2nd half of the 19th century New York City became the central financial center of the United States. After that the New York Stock Exchange became the number one trading center. The reason for this being that its members focused on buying securities of larger corporations. At that time all the smaller stocks of smaller companies were handled on the streets of downtown New York City. In 1908 these brokers formed the New York Curb Agency which is now known as the American Stock Exchange. It was renamed to this in 1953.

Large companies and businesses began to take over the roles the smaller businesses played, and prosperity wasn’t equally distributed. By 1929, the banks controlled most of America’s financial resources, and it was estimated that 40% of American’s lived in poverty. However, earlier in the decade, in 1921, over 1.5 million American’s had some form of shares in stocks. America also saw the introduction of new technology, with things like cars, electric fridges, toasters, and vacuums.

Rather than the overall wealth inequality of U.S., the fall of prices, debtors, and employment contribute to the worse history stock market crash. Document 11 An image of the farmers tripping with a hat full of prices and a bag of overproduction. During this time period, the farmer industry began to fall apart dramatically. They don’t have much money to spend and they lived a pitiful life.

The Wall Street stock market crash is the worst and longest economic collapse known as The Great Depression in the United States during 1929 through 1939. Millions of people lost their savings when financial institutions began to fail. This greatly affected those who were also on unemployment making the statistics reach twenty five percent due to companies laying off their workers because they didn’t have the funds to pay them, and forcing those to buy on credit leading to debts and foreclosures. (Belmonte 652) Additionally, due to so many people losing their jobs it caused them to act desperately when it came to supporting themselves.

The “Stock Market” is a term that actually describes several markets such as the New York Stock Exchange NASDAQ, where the stocks of companies are traded. Shares in a company are sold and the shareholders then become part owners of the company. Offering shares of stock raises money for continued research and development of company products or services.

For the month of December, I was given an assignment consisting of $100,000 and four stocks to invest in. My four stocks were The Ralph Lauren Corp., Visa Inc., Master card Inc. and The Chevron Corp. As stated I was given a month to record my data and I ended up with a total capital gain of $5,518.36 for the one month period for my investments. I have to thank you Mr. Acker, this project was not difficult, but it did confuse me. Receiving this assignment scared me in a way, because I didn’t know what I was getting into. The finance world is scary and tricky, one minute the market is doing good and other days it would be low. While calculating my capital gains or losses I thought I would lose a larger

Moreover, with this extra cash and optimism, consumers will invest enormously. The stock market will reach record breaking highs. The stock market is a clear economic indicator of how well the U.S economy is doing and enhances economic growth in and of

The New York Stock Exchange has worked to become less exclusive to wealthy investors by opening itself to the public and allowing women to be on the exchange floor, something that was not allowed before 1943. Through its registration as a nonprofit organization and the government’s creation of the SEC, the New York Stock Exchange has worked to provide security for the public’s investments. Some of the security measures in place are requiring companies to provide detailed financial reports as well as financial operations. It has also worked to increase efficiency by upgrading technology to handle the workload of transactions that occur

The article mentions how one should not confuse the market with the economy. Markets have ignored the fundamental indicators of the economy and there is no sign of infection in the real economy. Paul Samuelson’s pun on how “the market has predicted nine of the past five recessions” is mentioned. After noting how there are no signs of contagion, an interesting question is brought to the reader: “What if the stock market is more than just an indicator? What if a stock selloff can cause unemployment and recession?” (John Carney) Apparently, that is what data going back to 1929 on the stock market suggests.

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.

The stock market grew in the 1920s and developed rapidly. The market, as a stock exchange, because people could make much money by investing in it. To some extent, because people could pay goods on credit, it was easier to borrow money to invest in the stock market. In the 1920s, American economy was booming and developed increasingly. The stock prices kept up with businesses’ growing profits. There were many reasons why people wanted to earn much money. The worldwide speculation was growing rapidly in the late 1920s. As the stock prices higher and higher, the inflation was due to burst. In addition, when banks started to loan money to stock-buyers, the crisis broke out. On October,29,1929, the stock market was influenced by the inflation, over 16 million stocks sold in a flash and the losses exceeded $26 billion. By the end of 1930, the illusory prosperity became a bubble eventually. Although the stock market tried to regain some losses, it was not a solution to face with this crisis. Because of this crisis and the loss of confidence in stocks, people decided not to save money in the bank and forced the banks to withdraw their savings. During the Great Depression, about 9000 banks closed their doors. That was to say a large amount of money disappeared from the economy. Finally, America entered what is called the Great

Extensive amount of studies have been undertaken to examine the effect of stock market on GDP growth. Some of the studies on this topic are Demirguc-Kunt and Levine (1995), Levine and Zervos (1993, 1995, 1998) etc. In theory well developed stock market should enduce saving and efficiently allocate capital to productive investments which would later lead to increase in the rate of real output. Stock markets contribute to accumulation of domestic savings by enhancing the scope of financial instruments available to savers and investors trough diversification of their portfolios. Dailami and Aktin (1990) think stock markets provide important source of capital investment at low cost which should serve as an obvious benefit for the economy in general. In developed economies with developed stock markets share ownership provides individuals with probably the most liquid means of sharing the risks and benefits of investing in promising projects. The main advantage of liquid stock market is that it provides investors to cope with liquididy risk by allowing participants hit by illiquidity constraints to sell their stakes to othe participants who at the time do not suffer form the same problem. These transactions are done in real time with frictions in the market being at the minimum. The ending result of this process is that capital is not prematurely withdrawn form firms to meet short term liquidity need. It is just changing hands. Stock markets also play an important role in