Driving Question:
What is the significance of the American Stock Market?
Lets first start off by asking, what is the stock market? The stock market is an exchange where your given the opportunity to enhance your wealth. It’s a pretty simple concept but can get very complex in some parts. The basis of the idea is that a company offers a percentage of their company to the public. Once this is done people can buy a part of this company in hopes that the price they paid for it will go up so they can make profit. The company gains money to further build and grow. It sounds like a win on both sides. However there is a down side to this idea. People can invest in a company and if the price they paid goes down then they lose money. When this happens other people see the downfall and pull out as well causing a complete downward spiral for the company. About half of the American adult population owns a stock as of 2022. The stock market is major contributor to our economy.
What is the significance of the American Stock Market?
Lets first start off by asking, what is the stock market? The stock market is an exchange where your given the opportunity to enhance your wealth. It’s a pretty simple concept but can get very complex in some parts. The basis of the idea is that a company offers a percentage of their company to the public. Once this is done people can buy a part of this company in hopes that the price they paid for it will go up so they can make profit. The company gains money to further build and grow. It sounds like a win on both sides. However there is a down side to this idea. People can invest in a company and if the price they paid goes down then they lose money. When this happens other people see the downfall and pull out as well causing a complete downward spiral for the company. About half of the American adult population owns a stock as of 2022. The stock market is major contributor to our economy.