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
6 comments:
I believe that keeping the current stock that you have invested in currently would be the smartest solution because right now, the stock is as low as possible and if you ride with it, you may be able to gain some money. I think jumping off the market wouldn't be as smart of an idea because it would be a pretty big risk and this risk may make you a lot of money or it may take a lot of money away from you. I think that jumping onto the foreign stock market would be a pretty bad idea for the future because you don’t really have a sense of what’s happening there because it’s far away from you. I believe that foreign stock markets will go down a bit in the near future, while the stock markets here will rise. So basically, I think that the best solution during this devastating time would be to just stick with the stock you invested in, and ride with it for a while because I believe there is a bright light in the near future.
Mandeep Dhami
Financial Accoutning 12
Block A
The best time to buy a stock is probably when a company takes a huge hit (AIG), because now it has nowhere to go but up. You are
absolutely right about newcomers to the "stock game" sinking there money into these "sunken" companies (haha).
That's just not the way things work in the real world. Before you invest, you need to know what you are getting yourself into, and a lot of people won't. They will waste their money away and live to regret it once their broke and have no money in the bank. I guess that the thing you have to remember is that if you invest in the wrong company (no research put into the investment), someone else it going to pocket YOUR money.
P.S - Love the "kid in a candy store" analogy. It's a classic!
Cameron Tut
Block A
I completely agree with you that investors should carefully research the company or companies before investing in them. I also think that the best time to invest would probably be when the stock of a company is at a low point, because chances are, their stock will go up soon. If you invest in a company whose stocks are high at the moment, then chances are, it'll probably go down sometime soon. Also, I think that for new investors, they should be very cautious about how much money they invest due to their inexperience. If they invest a lot of money and the stock goes down, then they could very well go bankrupt.
Yichu Zhou
FAC 12
Block B
These inconsistencies in values of stocks will be a very challenging period for investors. For even the most experienced investor, it is tough to predict which stocks will go up and which will go down. This change can end up in riches for one investor and bankruptcy for another. Investors will have to do a lot of research before buying, trading, or selling stocks; however, even with the highest amount of knowledge of a certain stock, it may not be enough with all the unpredictable changes occurring. I agree that the inexperienced investors should be careful with their decisions, but this can be a good learning experience for them as well.
Raymond Chen
Block B
FAC 12
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