The dow is down 500 points...what does that even mean??
Alright so here's what I've figured out...This stuff is real basic...I've never learned what any of these financial terms I'd hear on the news/read in the newspaper (which I rarely ever did in the first place)...until now that is......
The actual definition of RECESSION is...
>>>RECESSION - a business cycle contraction, a general slowdown in economic activity
--Production (as measured by GDP), investment spending, capacity utilization, household incomes, business profits, and inflation FALL
--Bankruptcies and unemployment rate RISE
Currently the unemployment rate is 9.2%. This is way high. In 2007, the unemployment rate was half of the current rate at 4.6%. A "normal" unemployment rate might be around 5%.
Global unemployment http://www.gfmag.com/tools/global-database/economic-data/10297-worlds-unemployment-rates-2006-2010.html#axzz1UBcCEECI
So what the heck is the dow? I asked myself and have just begun scratching the surface in learning about it......
The "Dow" is the "Dow Jones Industrial Average." It is used to gauge the overall ups, downs and volume on the New York Stock Exchange. Thirty stocks are used in calculating the average - from financial, food, beverage, consumer goods, tech, retail, equipment, entertainment, oil, chemical, and pharmaceutical industries. Basically it reflects the value of stock prices.
The dow being down 500 points means the stock market is in bad shape...one possible reason for it dropping is that lots and lots of people sold their stock...in a panic because of the mess the economy is in. There's so much more to this that I don't understand so bear with me...
This article (August 5, 2011) gives you the current situation with the dow....
http://money.cnn.com/2011/08/04/markets/markets_newyork/index.htm
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To really begin to understand the Dow you gotta know something about the stock market...I learned some about stocks and bonds towards the end of my accounting course this summer...but I know I have a LOT more to learn....here's some basics.....
--Stock Market = a public entity for the trading of company stock (shares) and derivatives at an agreed price
--Stock - a share of the ownership of a company
--Stockholders have claims on the assets of a company
VIDEOS!!!
very simple....basic....quick....helpful....
What are stocks? http://www.investopedia.com/video/play/what-are-stocks
What is inflation? http://www.investopedia.com/video/play/what-is-inflation
Balance Sheet http://www.investopedia.com/video/play/introduction-balance-sheet > this one pretty much sums up in a VERY VERY simplified way a lot of what I learned in my accounting class
The actual definition of RECESSION is...
>>>RECESSION - a business cycle contraction, a general slowdown in economic activity
--Production (as measured by GDP), investment spending, capacity utilization, household incomes, business profits, and inflation FALL
--Bankruptcies and unemployment rate RISE
Currently the unemployment rate is 9.2%. This is way high. In 2007, the unemployment rate was half of the current rate at 4.6%. A "normal" unemployment rate might be around 5%.
Global unemployment http://www.gfmag.com/tools/global-database/economic-data/10297-worlds-unemployment-rates-2006-2010.html#axzz1UBcCEECI
So what the heck is the dow? I asked myself and have just begun scratching the surface in learning about it......
The "Dow" is the "Dow Jones Industrial Average." It is used to gauge the overall ups, downs and volume on the New York Stock Exchange. Thirty stocks are used in calculating the average - from financial, food, beverage, consumer goods, tech, retail, equipment, entertainment, oil, chemical, and pharmaceutical industries. Basically it reflects the value of stock prices.
The dow being down 500 points means the stock market is in bad shape...one possible reason for it dropping is that lots and lots of people sold their stock...in a panic because of the mess the economy is in. There's so much more to this that I don't understand so bear with me...
This article (August 5, 2011) gives you the current situation with the dow....
http://money.cnn.com/2011/08/04/markets/markets_newyork/index.htm
-----------------
To really begin to understand the Dow you gotta know something about the stock market...I learned some about stocks and bonds towards the end of my accounting course this summer...but I know I have a LOT more to learn....here's some basics.....
--Stock Market = a public entity for the trading of company stock (shares) and derivatives at an agreed price
--Stock - a share of the ownership of a company
--Stockholders have claims on the assets of a company
VIDEOS!!!
very simple....basic....quick....helpful....
What are stocks? http://www.investopedia.com/video/play/what-are-stocks
What is inflation? http://www.investopedia.com/video/play/what-is-inflation
Balance Sheet http://www.investopedia.com/video/play/introduction-balance-sheet > this one pretty much sums up in a VERY VERY simplified way a lot of what I learned in my accounting class
posted by jcw at
10:37 AM
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