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Corporation, takes on a life of its own. It becomes a piece of property in itself. Like a work of art or
A hoard of gold, a share of stock is regarded as something with a potential for increased value.
Owners of stocks (and bonds, as well) are continually in the business of trying to better their
Fortunes by selling and buying stock in the secondary market. A stock increases or decreases in
value for a variety of reasons: the general business climate, the type of industry represented by the
Яоск, the success of the issuing company, and more. Those who trade in the secondary market are
Basically speculators — they are betting that the stock they buy will increase in value and that the
Stock they sell will decline or level off. Shortly after the crash of 1987, the economic journalist
William R. Neikirk stated: “It is not too strong to call our financial markets casinos.” When stocks
Are traded in the secondary market, none of the money goes to the company that originally issued
It It goes to the seller, minus a commission for the broker.
When a market crashes, the fall occurs in the values of stocks traded in the secondary market.
The values of company assets remain the same. In a secondary market a stock value may react to
Many factors that are completely unconnected to the company that issued the stock. The company
Дата публикования: 2014-12-28; Прочитано: 200 | Нарушение авторского права страницы | Мы поможем в написании вашей работы!