Stock Market: Is There Cause For Concern?
JaMonet Rice
JaMonet Rice
In the world we live in today, money is everything. It gets you access to places you want and need, liberates you from relying on your parents, and comes in handy when you really want that Four for Four at Wendy’s. However, anyone with a basic understanding of economics knows that money does not come easy and if you lose a lot of it at once, you need to be concerned. This is exactly what brokers and investors were feeling when our very own stock market dropped more than three percent last week.
To clarify any confusion about the stock market and investments, here are a few definitions that will help with any understanding about the material discussed in this article. To start, the stock market is a collection of markets and exchanges where the issuing and trading of equities or stocks of publicly held companies, bonds, and other classes of securities take place. This is important as the U.S has been into a free market for a very long time.
There are two markets a primary and secondary market. Each market is important in exchanging goods and securities, but the primary market is where the most important commodity trading happens. The people doing all this trading are called stock brokers. Their primary job is to buy and sell securities on behalf of investors.
Another important part is the Dow or the Dow Jones Industrial Average which is an indicator about how well 30+ companies in America have traded in a normal day. The Dow is very essential to the market and the economy. If you are having trouble seeing this in your head imagine movies about fiance, think Wolf of Wall Street or The Pursuit of Happiness.
Last Monday, the tech sector of the stock market dropped 1.5 percent. This in turn affected other stocks like Apple and Netflix, who both fell 1.8 percent each. At the end of the day, the Dow went up to 142.43 points, but it also fell 96.11 points. It does not take an investor to know, that if you are losing that many points that a huge problem.
All of this went down last Monday, however the stock market is not yet recovered. Hopefully as the economy improves, so will the market; which will definitely improve the U.S.
To clarify any confusion about the stock market and investments, here are a few definitions that will help with any understanding about the material discussed in this article. To start, the stock market is a collection of markets and exchanges where the issuing and trading of equities or stocks of publicly held companies, bonds, and other classes of securities take place. This is important as the U.S has been into a free market for a very long time.
There are two markets a primary and secondary market. Each market is important in exchanging goods and securities, but the primary market is where the most important commodity trading happens. The people doing all this trading are called stock brokers. Their primary job is to buy and sell securities on behalf of investors.
Another important part is the Dow or the Dow Jones Industrial Average which is an indicator about how well 30+ companies in America have traded in a normal day. The Dow is very essential to the market and the economy. If you are having trouble seeing this in your head imagine movies about fiance, think Wolf of Wall Street or The Pursuit of Happiness.
Last Monday, the tech sector of the stock market dropped 1.5 percent. This in turn affected other stocks like Apple and Netflix, who both fell 1.8 percent each. At the end of the day, the Dow went up to 142.43 points, but it also fell 96.11 points. It does not take an investor to know, that if you are losing that many points that a huge problem.
All of this went down last Monday, however the stock market is not yet recovered. Hopefully as the economy improves, so will the market; which will definitely improve the U.S.