Can you please give me short 5 intelligent questions about this topic to ask to
ID: 1116503 • Letter: C
Question
Can you please give me short 5 intelligent questions about this topic to ask to the presenter?
COMPETITION IN THE NEW YORK STOCK MARKET
FUN FACTS ABOUT THE STOCK
MARKET
• The oldest stock exchange in the world started in Antwerp, Belgium, in 1460
• the oldest stock exchange in the U.S. was started in Philadelphia, in 1790
• The first company listed on the New York stock exchange was the bank of
New York in 1792
• The highest price paid for a seat on the NYSE was $2,650,000, in 1999. The
lowest price paid for a seat, was $4,000, in 1876.
• The American Stock Exchange was originally called, "The Curb". This is
because traders first started out on the streets of New York City, standing by
the curb.
IMPORTANCE OF THE STOCK
MARKET
• The stock market is vital to our survival as a nation. The New York Stock
Exchange allows companies and entrepreneurs to come together and not
only make money, but to help our nations economy. The companies need
investors to help them have the capitol needed to produce their products.
The investors need the companies in order to make money on their
investments.
• This helps our economy in other ways as well, not only does it help our
companies, and investors, it also helps bring more money into our economy
which means more money in taxes for our government. Also the success of
our companies in America means we can produce more products here and
keep the jobs and money at home.
WHAT IS THE STOCK MARKET??
• The stock market is as close as we come to a perfectly competitive market.
• The stock market is where people can buy and sell stocks.
• The price of the stock is determined by the forces of demand and supply of
the stock.
• The buyer and sellers of the stock also effect the price of the stock, but their
effect is so small that it is considered to be insignificant.
• Most of the stocks are more or less homogeneous
STOCK PRICING
• The price of a stock reflects all of the publicly known information about the
present and expected future profitability of the stock. Otherwise known as
the “efficient market hypothesis”.
• The stocks are priced based on demand, but the higher value a stock has,
the higher the risk.
• Funds flow into stocks, and resources flow into uses in which the rate of
return, corrected for risk, is highest.
IMPERFECTIONS OF THE STOCK
MARKET
• Even tough the stock market is the closest thing we have to a perfectly
competitive market, imperfections still occur.
• For example, if a large corporation was to release $1 billion worth of stock,
the price of their stock will depress, or fall.
• Stocks can also become overvalued and that can cause the marked to fall.
Which actually happened to the New York Stock Exchange at the end of
the 1990’s
FOREIGN STOCK MARKET IMPACT
• In our world today, more and more American are trading foreign stocks, and
more and more foreigners are trading American stocks. This is due to the
communications revolution that linked stock markets around the world.
• This provides a lot of new possibilities for stock traders.
• This gives stock traders more options as far as the diversification of their
portfolio is concerned.
DANGERS OF FOREIGN STOCK
MARKETS
• The market could collapse, having all of the foreign stock markets
connected with the New York Stock Exchange means that is one of them
experiences a crisis, it can quickly spread to another.
• In October of 1987 the New York Stock Exchange collapsed, which caused a
sharp decline other stock markets around the world. It also happened in the
fall of 1997 when the stock market in southeast Asia collapsed and caused
sharp declines in stock markets everywhere. It also happened in 2002 when
the New York Stock market collapsed, and again in 2008 when the U.S.
housing market crashed.
RECENT DEVELOPMENTS IN THE
STOCK MARKET
• In recent years the New York Stock Exchange has struggled to predict
changing economic conditions.
• The stock market has also lost some of it capability to be used as a central
source of capital for corporate America. This is greatly due in part to the
corporations borrowing money in increasing amounts from banks for
takeovers, and mergers.
CURRENT STATE OF STOCK MARKET
• Global markets is posing a threat to the New York Stock Exchange. The
global market has more options for investors, round the clock trading, and
could eventually eclipse wall street as the most popular means of stock
trading.
CONCLUSION
• The New York Stock Exchange is great for economy and is a necessity in
order for our country to continue to thrive.
• The stock market is a place where people can buy and sell stocks in order to
make money.
• the stock market fluctuates depending on supply and demand, as well as
the amount of stock offered by different companies.
• Since the linking of stock markets around the world, there is more options for
investors to build their portfolio, but more risk for the stock market to collapse.
• Because of the recent developments in the global market, there is an
increasing risk that the New York Stock Exchange will be eclipsed as the most
popular sock market.
Explanation / Answer
1) Can you give the histrorical background of the stock market of the world and United states, also please tell about the first stock listed on the US stock market ?
2) Please elaborate about the purpose of the stock market and how stock prices are determined ?
3) What are some of the imperfections present in the stock market ?
4) What is the impact of the foreign stock and some of the dangers present in foreign stock market ?
5) What are some of the recent developments in the stock market and the current state of stock market in United States ?