This Forum has been archived there is no more new posts or threads ... use this link to report any abusive content
==> Report abusive content in this page <==
Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
What's the stock market? (where many people with suits are walking around and waiting for something?)?
04-04-2014, 03:26 AM
Post: #1
What's the stock market? (where many people with suits are walking around and waiting for something?)?
This might be a stupid question but I just saw batman the movie and all that it was about was about some money in the stock market and things like that. Why are many people at that one place sarong at a screen with a ticket on their hands?? Does the stock market affect me on anything? I'm 17 years old btw. Thanks

Ads

Find all posts by this user
Quote this message in a reply
04-04-2014, 03:40 AM
Post: #2
 
Yes, the stock market affects the entire global economic system. Buying stock is like investing in a company, say you buy a share of stock for $5 and the company makes a billion dollars, your share is now worth more, and you can sell it back, or to somebody else and make money off of it.

A stock share is literally like owning a portion of that company, if you own more than 50% of a company's stock, you now own that company ( I think). So companies only sell out certain ammount of their total stock. If you own a certain percentage you can vote on policies and activities of the company, like a chairman in some ways.

If a company's stock goes down to 0, then the company is not worth anything and they are most likely bankrupt at this point.

A company will sell stock when they are beginning to get big to give them some support money to accomplish their goals. For example say that a company worth $10,000 splits up 100 shares of stock and then sells 40 shares, each of those shares are worth $100, so they just made $4000 on nothing, however they have to buy them back if at any time nobody wants that stock.

Ads

Find all posts by this user
Quote this message in a reply
04-04-2014, 03:46 AM
Post: #3
 
Well what you saw was a stock exchange, which is basically the physical place were stock market trades are made. With computers and internet you can buy, trade, and sell all from your computer (or even your phone). However, back in the day you had to either go to an actual stock exchange (usually in big cities such as New York) or pay a stockbroker to do it for you. The tickets are a way of buying and selling stocks in the stock market, while at the stock exchange. All stock trades were made through tickets for a long time, but as I side before there are now computers to do this for you (I'm not sure if tickets are used at the stock exchange still in real life, or if they have computers there to). What a piece of stock is, is basically a share of a company. There are stock holder meetings were you can vote on certain things in the company and the more stock you own, the more your vote counts (essentially you just have more votes though). However, the company is still run by some head of the company, such as a CEO. If you bought more than 50% of the stock in a company you could make all the decisions that were presented at stock holder meetings (but to get enough money for this you would have to have an unrealistic amount of money). The real reasons that people buys stocks is usually money. Most people don't even bother to go to the stock holder meetings because they don't really care that much. They are in it for the money. There are essentially two ways to make money in the stock market:
1. buy low and sell high. As you probably know, stock prices go up and down, and generally are a reflection of the economy. When business is good it cost more to buy a share, but when the economy goes down, so does the price of stock. If you have enough money during a down economic times, then you can buy some stock, and then sell it when the economy goes back up. I'll give an example. If I bought stock in Apple for 20$ (it's much higher in real life, but this is just an example) and in two months it went up to 30$ and I sold it, then I would have made 10$ per share. Of course if it goes down then I will want to wait to sell another time.

2. The second way to make money is dividends. Dividends are payments made to shareholders. When a company makes profit it will ethier use this money in the company (buying materials, paying employees, etc.) or it will give it to shareholders as dividends. Again the amount of the dividends will rely on how well the company is doing and it will be proportional to how much stock you own.

The stock market affects everyone indirectly because when it is up, generally so is the economy, when it's down so is the economy. However, it dosen't affect you directly unless you actually own stock. Buying stock is a good investment right now for you because by the time you have been on your own for a few years it will probably have bounced back and you could have made some money. Of course if you don't have money to spare then your best not risking it because you may need it for college, bills, or other unexpected costs. If you only have a little money to invest then penny stocks is the way to go. These are stocks that cost less than a dollar a share, but you can still make a little money (it's the same concept as micro loans, a little money here and there can add up). If you are looking to buy stocks I would suggest looking at what will increase in the future. For example, do NOT invest in facebook. It will most likely be obsolete in a matter of a few years, while a company like Apple will keep products coming. Use a little innovative thinking to predict the market as well. Don't invest in a company just because you like them. Invest in companies you think with get the most use in the future. For long term investment put some money into a hearing aid company. Due to the use of loud music and ear buds, this generation is predicted to need more ear buds, and at an earlier point in life.
Find all posts by this user
Quote this message in a reply
04-04-2014, 03:56 AM
Post: #4
 
Lets be honest with this question: Now that you've read what the stock market is ideally supposed to represent in prior answers, I'll tell you what it represents in today's corrupt environment, where the suits you talked about lie, cheat, and steal to make sure their incomes remain AT LEAST 10x-20x above the average employed American's.

So, the STOCK MARKET is one of the places where Wall Street professionals, Bankers, Traders, etc scandalously cheated Americans out of a majority of their savings by scamming the public with pricing scenarios that they tricked investors into believing and then did the opposite, therefore gaining lots and lots of money at the expense of people like your parents and grandparents, who probably saved all their lives for retirement and because of the stock market and the con artists that are involved in trading, now are left with nothing and have to work the rest of their lives instead of retiring as planned for years and years.

Yet few known ever get reprimanded (jail) and are now making loads of $$ again while others continue to suffer from their actions. There are also people called Wall Street Analysts who evaluate a stock's performance, then hold conference calls with certain people, including the CEO, CFO, Executive Management, etc of publicly traded companies and tell them what they "must do" to maintain a positive rating...although those analysts know very little about the industry itself and even less about individual markets. With all this limited knowledge, they basically control the corporate goals and initiatives of traded companies who fear their prices will fall otherwise (company value decreases, rates are impacted, etc), regardless of people in the industry and individual markets who raised the point that the 'suggestions' from the analysts are impossible and make little business sense. Hence, corporations chase unreasonable and economically impossible goals which lead to things like the crash, banking catastrophe, depression, and unemployment rates that we have seen over the last several years.

For further information on the dishonesty, disrespect, distrust, and relentless greed of the dirtbags in the current world of Finance, both in the USA and most other parts of the world...research the LIBOR scandal that's impacting virtually all GLOBAL FINANCE, except for those who still use goats for currency.
Find all posts by this user
Quote this message in a reply
04-04-2014, 04:09 AM
Post: #5
 
I have no friends
Find all posts by this user
Quote this message in a reply
04-04-2014, 04:14 AM
Post: #6
 
The stock market is kinda like the professional way of gambling. Companies have these things called shares,. Common people can buy these shares, meaning that they own a small part of the company. Or a stock. When the value of the company rises, the amount people can buy the stocks at rises. If a person bought a stock for cheap, but waited until the company became more successful, then that person could sell the stock for a lot more than he bought it for.

The people holding the tickets are holding proof of their stock. The screens show how much they can sell their stocks for different companies. The stock market does affect you. It affects all of America's economy in a way. For example, the Great Depression was caused in a large part to the stock market failing.
Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)