Monday, January 12, 2009

What If the Stock Market Crashes?

If you are not familiar with the stock market, join the club! There is so much to learn about the stock markets. For instance, what's a stock quote and what does it really mean when the stock market crashes? The stock market has been around for years and yet there are so many people that do not understand how it works, what it shows and how to watch it. With the slowly declining economy, the entire world has been up in arms about the stock markets. We're finding out more and more how dependent the markets were on the United States. Who knew that American markets had such an effect on international markets? Now is the time to really explore what the stock market is and why it's important to understand if it crashes!

The stock market crash in the late 1920s sparked The Great Depression. Many people were hurting due to the poor economy during that time. But before dwelling on the Depression and the market crashing, several question come to mind, such as what exactly is the stock market? Do we all need to invest in it? Well for starters, a "stock" is simply a "share" in a company. The stock market is the collection of stocks, or shares, from companies listed in the stock exchange. But do we need to invest in it? The answer would probably vary from person to person. Everyone does not participate in the stock market. If you're the type of person that likes to see your money, then perhaps investing in stocks is not for you. However, if you're the type of person that would like to see your money work you, investing can be the way to go. It is all up to you and it can be very profitable if you become savvy of the markets.

When anyone talks about the stock markets, the first thing that should come to mind is the New York Stock Exchange, with what seems like millions of people running around with their arms in the air, talking on phones and shouting over one another. The chaos that is the NYSE seems like such a nightmare, but in actuality, it is the spirited culmination of the stocks being traded from all over the country. In the beginning of the day, there is the Opening Bell and at the end of the day, is the Closing Bell. Sometimes, celebrities can be seen ringing the opening or closing bells. What a treat that would be, to start the day of trading? It would be a phenomenal experience to be able to start the day of trading on the NYSE. Likewise, to close the day would be just as great.

Investing in stocks is a personal decision and it could be a great way to see your money grow without doing much work! With today's markets, it is best to learn as much as possible about the stock market before taking the leap of faith with your money.

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Alan Snell is an expert on stock picking and wants to help people by sharing his expertise.

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