Rise Of The Tech Stock
Over the past few years, many millionaires have been created due to the economical explosion of the stock market. The market isn’t just growing, as it did in the mid to late seventies; but it is on steroids, and is growing like never before. Backed by the relentless, yet sometimes spasmodic, growth of the NASDAQ Composite, Wall Street’s impact on the future cannot be denied. For as long as the market has been in existence, drastic changes such as these have never taken place. What awesome power could have produced so much money in so little time? What colossal force could have caused the United States’ economy to flourish? The answer lies in one, simple, recently ...
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of a company (Brian 1). The reason one would do this is because he wants part of the profits of the company. If one purchases 1% of a company, he will receive 1% of the income, to put it in a simplified manner. The money the company gains from selling their stock is placed back into the company. This way, the company can grow, and produce more profits for the stockholders. The company’s value is represented by the stock price on the stock exchange (Brian 2). Over time, a method of judging a stock’s performance, called the "profit to earning ratio" was created. "P/E is shorthand for the ratio of a company's share price to its per-share earnings. For example, a P/E ratio of 10 means that the company has $1 of annual, per-share earnings for every $10 in share price (Green 1)." This ratio basically represents how much money the investor is putting in per dollar earned. This was generally a good thing to look at when choosing a stock to invest in, but ...
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and ironically enough, it is precisely popularity that causes its gains. Because of the popularity, people continue to purchase Yahoo’s stock. Although the company isn’t making direct profit, it certainly makes a lot of money from the stock purchases, so the company actually makes the money off of the stock market (Brian 5). Rare, indeed, to see this at such an extreme. With all of this success must come organization, and thus is the role of the NASDAQ Composite.
Although NASDAQ came about long before the rise of tech stocks, it now represents the growth that they portray. This is mostly due to the large volume of blue chip Internet stocks that have joined the ...
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Rise Of The Tech Stock. (2008, December 7). Retrieved December 22, 2024, from http://www.essayworld.com/essays/Rise-Of-The-Tech-Stock/94254
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"Rise Of The Tech Stock." Essayworld.com. December 7, 2008. Accessed December 22, 2024. http://www.essayworld.com/essays/Rise-Of-The-Tech-Stock/94254.
"Rise Of The Tech Stock." Essayworld.com. December 7, 2008. Accessed December 22, 2024. http://www.essayworld.com/essays/Rise-Of-The-Tech-Stock/94254.
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