Book Title:
The Beginner's Guide to Investing
Keywords:
stock market, economy, speculators, stakeholders, business, ownership, investors, marketSynopsis
A stock market, to say the very least, is a place for buying and selling stocks. It also acts as an indicator of the economic cycle. When the economy is doing well, the prices of stocks tend to increase in the market, generally. However, when the economy is down, you can also expect the prices of stocks to decline, this can be true even for a very good stock. It is also worth noting that the prices of stocks primarily depend on the performance of the business. When a business is doing well, the price of its stocks will also tend to increase; the opposite would happen if the business is not earning well. Of course, there are odd cases where speculators buying into a stock that is not doing well at all, which will result in a high stock price even for a crappy company, but that is another story for another time.

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