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The Mentality Of The Stock Market - Online Term Paper

The Mentality Of The Stock Market

If playing the stock market were an easy game, everyone would be
rich. Whether an investor to chooses invest very actively, or long term, it
is a game of mentality. During a economics course in college a professor
will fill the board with algebraic expressions & economic gibberish,
intended to explain exactly how the financial markets work. And if every
investor were 100% rational; everything learned in financial economics
would be true. The fact of the matter remains, very few people are rational
when it comes to their finances.
Anyone who purchase stock does so with the intent of getting more
money back than they put in, the question is how does one go about deciding
what ...

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company and ask them to send a quarterly report so they can look over
the company's financial figures, and find out who holds most of the stock.
If a large portion of the company is held institutionally, bad news can
hurt the stock dramatically because institutions tend to sell at the first
sign of weakness, which might be 50% of the outstanding shares. Another
source for trading information would be the company's recent press releases
and how they have affected the stocks price. The company might come out
with a press release saying their earnings for the previous quarter were
better than expected, consequently the price of the stock will rise, or
they might come out with a press release saying that their being sued for
300 million dollars and that would most definitely have a negative affect
on the stock.
They mentality of a very active trader can be somewhat different.
Active traders watch the company press release and rumors very closely.
They don't react directly to the ...

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The Mentality Of The Stock Market. (2007, May 18). Retrieved April 19, 2024, from http://www.essayworld.com/essays/The-Mentality-Of-The-Stock-Market/65049

"The Mentality Of The Stock Market." Essayworld.com. Essayworld.com, 18 May. 2007. Web. 19 Apr. 2024. <http://www.essayworld.com/essays/The-Mentality-Of-The-Stock-Market/65049>

"The Mentality Of The Stock Market." Essayworld.com. May 18, 2007. Accessed April 19, 2024. http://www.essayworld.com/essays/The-Mentality-Of-The-Stock-Market/65049.

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PAPER DETAILS

Added: 5/18/2007 02:23:40 PM
Category: Economics
Type: Premium Paper
Words: 874
Pages: 4

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