Chapter 1 Article Response
http://www.canada.com/vancouversun/news/business/story.html?id=59f73d28-2e36-46de-a39d-15e5fc40c8f9
Summary
The article I read is about the recent slump in the stock market and how it is affecting those who invest in and sell stocks. The article describes how the stock market is unpredictable and how stocks are “going up, down, and flipping around.” The article explains that the foreign market companies’ stocks are rising, such as Coca-Cola and Colgate Palmolive. Many inexperienced investors are going to want to jump into the stock market with buying shares, which could definitely hurt them financially but could also result in positive outcomes. The article reports that buying stocks at low prices and holding them is the smartest thing to do at this particular moment. In the near future, the stocks will increase in value and this will result in profit.
Connection
I connected this news article to the topic about shareholders and investors in the financial accounting textbook. Investors and shareholders are always looking to buy, sell, or trade shares to enhance their financial position. Especially with the recent stock market slump, investors are eagerly searching for the right stocks to invest in. Currently, buying, selling, and trading shares are crucial moves for investors and shareholders due to the unpredictable stock market. Investors need to make responsible decisions whether or not the business they decide to invest in is going to succeed or fail. The recent stock market slump is going to benefit some investors and shareholders who invest in the right corporations. With that being said, some shareholders and investors will be negatively affected by investing in the wrong corporations.
Personal Reflection
I feel that investors should carefully research the corporations that they are thinking about investing in. With the recent stock market slump, many inexperienced investors are going to jump into the market and make key investments that could make them or break them financially. These inexperienced investors should cautiously decide to invest in corporations rather than just playing the role of a kid in a candy store. I feel that investors should make investments with a reasonable amount of money depending on their financial position. Inexperienced investors should not take any chances and make risky investments that could kill them financially. I feel as though this stock market slump is going to help many investors by giving them valuable experience and more knowledge in the world of stock exchange.
-H.Basra
