The essay covers how the investor should invest the above amount, what reasons the investor has for choosing the stocks and the manner of investment. Also included in this essay is the detailed but precise analysis of the stock selected by the investor. The essay present analysis of the company whose stock has been purchased by looking at the historic performance of the company based on stock prices and the risk rates to which any prospective investor must pay attention. The essay concludes by indicating with a clear support whether the investment made would be profitable or not, and if profitable, the value is provided based on the stock’s current price. Either stock market can be a physical or a virtual platform created to facilitate buying and selling of securities between the willing and able buyers and sellers. Because of their function, they have been considered as financial institutions that provide facilities and regulations required to peacefully conduct transaction in a lawful convenient way. The exchanging the stock market is facilitated by the existence of individuals called brokers. Their chief function is to facilitate the exchange of stocks and other securities by providing a link between buyers and sellers. They act in place of members of the public who buy and sell shares of the quoted companies. The whole amount ($ 1 million) should be invested in ordinary shares. The company selected is Dow Jones.
GOLD - Randgold Resources Ltd. These companies represent a diversified trading strategy with stocks in the consumer retail sector focusing on small business and home enterprise growth in a recovery economy, Chinese biotechnology for rapid growth potential, the NASDAQ giant and tech-sector leader Apple with the dynamic iPhone, iPad, and iOS lines internationally, and one of the largest miners in the world in Randgold.
The stock market can be very profitable but can also lead to losses. The stock market is very profitable creating a lot of interest to many people and though it may result in losses, there is a lot of benefit to the institutions selling their stocks, the individual that buy it and the governments of the various countries, making it one of the most popular earners.
The stocks were exchanged by the unofficial and unlicensed trade offices. The stock market was still not full-fledged developed but trading of shares was started by the unofficial proceedings. In the deficiency of suitable mechanisms, transparency and controls, the element of fairness was absent.
The movement of the stock prices is largely determined by the relative merits and demerits of the information and how it is going to affect the performance of the company which the stocks represent. Just the same way the predictability of the information is impossible as to whether it is good or bad, it is equally impossible to predict the direction in which the stock prices will move in the future based on such information.
The announcement that President Bill Clinton was going to be impeached, Scooter Libby's indictment, and in the aftermath of Hurricane Katrina the stock market responded by losing ground. But, in the above mentioned cases the stock market quickly recovered and made gains.
Commodities are traded in commodities markets, with derivatives are traded in a diversity of markets. The size of the worldwide 'bond market' is estimated at $45 trillion. The size of the 'stock market' is estimated at about $51 trillion. The world derivatives market has been estimated at about $480 trillion 'face' or nominal value, 30 times the size of the U.S.
In the context of business enterprises, it could be said to be a group of firms or corporations which have identical business structures and strategies, which make them amenable to more or less similar performances, considering the host of factors that impinge upon the business enterprises.
But even if the anomalies existed in the sample period in which they were first identified, the activities of practitioners who implement strategies to take advantage of anomalous behavior can cause the anomalies to disappear (as research findings cause the market to become more efficient)."
In order to make an investment, investors often reflect either risk averse or risk taking attitudes which depend upon their willingness to take the risks. Based on this assumption, investors rationally make decisions to maximize their returns and limit their risks.
If a person uses such information to buy or sell a company’s shares in the stock market this could amount to insider trading and which is a highly prosecutable criminal offence in the UK. (moneyextra.com, 2007)
For fair treatment of
5 pages (1250 words)Essay
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This essay seeks to relay to the reader a comprehensive summary of a stock market case. The case involves an investor who has $1 million and seeks to invest in various stocks of his choice. …