Stock Market Essay

1246 words - 5 pages

In the past weeks, I have been learning many things about the stock market. Using mainly the Internet, my grandpa, and a couple of books as sources, I have been able to research the most well known stocks on the stock market. I have learned how to use the Internet to find the information needed. Using this information, I was able to come up with the top 15 companies (in my opinion) out of the S&P 100. These include such large companies as Microsoft, Hewlett-Packard, McDonalds, and AT&T. I am planning on trying to choose the best one, and making a paper trade of it.A stock is defined as: "An ownership share, or ownership shares in a corporation." This means that if you buy a share of a stock, you have just bought a piece of that company. If there are more people wanting to buy a stock than there are of people wanting to sell it, then the price goes down. This process is called supply and demand. A stock is the same thing as a share, which is a piece of a company. All of these stocks are traded on the stock market.When you hear someone say the term "stock market", what do think one would mean by it? The stock market can mean a variety of things, but to me it is a combination of the NASDAQ, the New York Stock Exchange, and the American Stock Exchange.The word NASDAQ is an acronym for National Association of Securities Dealers Automated Quotation system. This is one of the largest stock exchanges in the country. All of the companies and trades are completed and kept on a computer.The American stock exchange is just another stock exchange. Its center of trade is located in New York City. There are over 1500 stocks listed under the American Stock Exchange.The New York Stock Exchange (NYSE) is the most well known stock exchange in the world. It holds some of the countries most time-honored companies. While computers are used, real people called specialist complete all trades. The NYSE is also the most popular one, because of the fact that it is on Wall Street.Wall Street got its name when there was a wall put up next to it. The wall was used by Governor Peter Stuyvesant to protect our country from the British. Years later, in 1789, Congress sold 80 million dollars in government notes to the public. They were sold under a Sycamore tree on Wall Street. Farmers and merchants began trading under the same tree, and eventually the NYSE was established at the same location. Since then, thousands of NYSE stocks have been traded there, and it is still the home of the NYSE.There are many different approaches to trading, and investing on the stock market. There is a saying that goes: "Bulls make money, and bears make money, but hogs get slaughtered." Each animal name is referring to a different approach to the Stock Market.The term "Bull" refers to someone who makes money while the prices of stocks are rising. He buys when he thinks that the price will go up with hope of selling at a higher price than the price he paid.A "bear," on the other hand, hopes...

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