StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Specific events over the past years that have affected the stock market.

Only on StudentShare
Pages 5 (1255 words)
Many events have affected the stock markets. This paper show several incidents that have taken place in history and how they affected the stock market. This paper focuses on events that have occurred since 1900. Prior to 1900 the Dow Jones Industrial Average did not keep records…

Extract of sample

Prices remain steady and predictable and investors are confident in the market remaining steady. Markets respond to changes in the economy and a major change in the economy often results in major shifts in the stock market. Market crashes are precipitate by something occurring within the economy or war (or the threat of war). The stock market (New York Stock Exchange) responds to changes by gaining value or losing value. Markets losing value are not good. Changes in the economy can be real or perceived (the belief that something bad is going to happen).
The NYSE (New York Stock Exchange) has responded in the past to changes (some perceived, some real) in the economic environment. Careful study of the stock markets since 1900 shows several events that affected the markets. Crashes in the market were swift and often lasted more than a year before the markets recovered. The most recent stock market crash was from January of 2000 to October 2002. During this time frame the markets were affected by the bursting of the 'tech bubble'. A lot of small '.com' start-ups went out of business and their investors incurred great losses. Also, during this time frame the twin towers were toppled by a terrorist attack (September 11th 2001). The instability this caused was reflected in market performance. The market dropped 37.8% before it recovered.
According to Brenda Spotten, Associate Professor ...
Download paper
Not exactly what you need?

Related papers

Malaysian stock market
Using Duncan & Etebari's (1990) method, an initial sample of five securities firms in the KLSE which posted the largest price gains for each of the 49 trading weeks of 2005 will be obtained, all of which were queried by the KLSE during the same period as well. From the price data, initial raw returns will be calculated which in turn will be used to estimate average and cumulative average returns.…
12 pages (3012 words)
Contrast Mackays Tulip Bulb story with the US housing market of the past 45 years
The recent credit crunch bothering the US economy in particular and the world economies in general, unleashed by subprime mortgages amply reveals the susceptibility of markets to speculative fads and misinformed human avarice and greed.…
2 pages (502 words)
Stock market
Gross Domestic Product is the total market value of all the final goods and services produced within a nation's borders in a given time period. Each goods and services produced and brought in the market have a price. The price of the total output is called as GDP. It can be measured by either cumulating all the income earned in the economy or all the spending in the economy and both measures…
10 pages (2510 words)
Role Of Analytical Investment Strategies And Efficient Market Hypothesis In Equity Selection And Stock Price Behaviour.
This paper investigates the applicability of the hypothesis in the U.K. stock market through interviews with investment analysts and managers to discuss the effectiveness of each strategy in the selection of equities. As a practical application of the concepts learned, the intrinsic value of IBM Corporation's stock is calculated using fundamental analysis, and an interpretation in the light of the…
42 pages (10542 words)
Republic of Irelands economy over the past three years
However, this economic boom started slowing down in 2001, two years later it resumed and then in 2006 it slowed down again. Efforts in this essay will be directed towards the post 'Celtic tiger' years. (O'Kane, 2007)…
8 pages (2008 words)
Stock Market Essay
When it comes to the analysis of other factors, it becomes imperative for me to delve into the political and economic factors of Hong Kong in 1993 and Singapore in 1989.…
8 pages (2008 words)