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Brainstorm ideas for an essay on the us stock market.

June 19, 2019

Brainstorm Ideas for an Essay on the US Stock Market

🌟 The US stock market is a fascinating topic with a rich history and many facets to explore. Here are some essay ideas to get you started:

Stock Market Predictive Algorithms :
Investigate advanced machine learning algorithms used for predicting stock trends. You can delve into recurrent neural networks (RNNs) or long short-term memory (LSTM) models and discuss their effectiveness in forecasting stock prices [1].
The Role of Big Data Analytics :
Explore how big data analytics has transformed stock market analysis. Discuss how data-driven insights impact investment decisions and market behavior.
Comparing Stock Market Giants :
Compare and contrast major stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ. Highlight their differences, trading mechanisms, and historical significance.
Market Bubbles and Crashes :
Investigate famous stock market bubbles (e.g., the dot-com bubble) and crashes (e.g., the Great Depression). Analyze their causes, effects, and lessons learned.
Behavioral Economics and Investor Psychology :
Explore how human emotions and biases influence stock market behavior. Discuss concepts like herd mentality, fear, and greed.
Regulatory Frameworks and Investor Protection :
Examine the role of government regulations in maintaining market integrity. Discuss agencies like the Securities and Exchange Commission (SEC) and their impact on investor confidence.
Stock Market and Economic Indicators :
Investigate the relationship between stock market performance and broader economic indicators (e.g., GDP growth, unemployment rates). How do they correlate?
Impact of Technology on Trading :
Discuss how technology (high-frequency trading, algorithmic trading) has revolutionized stock markets. Explore both advantages and risks.
Stock Market Volatility and Risk Management :
Analyze the inherent volatility of stock markets and strategies for managing risk. Consider diversification, hedging, and portfolio optimization.
Ethical Investing and Socially Responsible Stocks :
Explore the rise of ethical investing. Discuss socially responsible investment options and their impact on companies and markets.

Remember to choose a specific angle that resonates with you, and dive deep into research to create a compelling essay! Source: Conversation with Copilot, 6/19/202

Last Updated Jun 19, 2024
Answered By Peter Z McKay

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Essay on Stock Market

Students are often asked to write an essay on Stock Market in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Stock Market

What is the stock market.

The stock market is a place where stocks are bought and sold. A stock is a share of ownership in a company. When you buy a stock, you are becoming a part-owner of that company.

How Does the Stock Market Work?

The stock market is a complex system, but the basic idea is that buyers and sellers come together to agree on a price for a stock. The price of a stock is determined by supply and demand. When there are more buyers than sellers, the price of the stock goes up. When there are more sellers than buyers, the price of the stock goes down.

Why Do People Invest in Stocks?

People invest in stocks for a variety of reasons. Some people invest to make money. They buy stocks that they believe will go up in value, and then they sell them for a profit. Other people invest to save for retirement. They buy stocks that they believe will provide them with a steady income in the future.

Risks of Investing in Stocks

Investing in stocks is not without risk. The value of stocks can go down as well as up. This means that you could lose money if you invest in stocks. However, over the long term, the stock market has historically provided a good return on investment.

250 Words Essay on Stock Market

What is a stock market, how does a stock market work.

Stock markets are typically regulated by government agencies. These agencies set rules and regulations to ensure that the markets are fair and orderly. When you buy or sell a share of stock, you do so through a stockbroker. Stockbrokers are licensed professionals who help investors buy and sell stocks.

Why Invest in the Stock Market?

There are many reasons why people invest in the stock market. Some people invest to make money, while others invest to save for retirement or to build wealth for their families. The stock market can be a volatile place, but over the long term, it has historically been a good investment.

Risks of Investing in the Stock Market

There are also risks associated with investing in the stock market. The value of your investments can go down as well as up, and you could lose money. It is important to understand the risks involved before you invest in the stock market.

The stock market can be a complex and confusing place, but it can also be a rewarding one. If you are considering investing in the stock market, it is important to do your research and understand the risks involved. You should also consider seeking the help of a financial advisor.

500 Words Essay on Stock Market

A stock market is a place where people can buy and sell stocks. Stocks are pieces of ownership in a company. When you buy a stock, you are essentially becoming a part-owner of that company. Companies issue stocks to raise money to grow their business.

Types of Stock Markets

There are two main types of stock markets: primary and secondary. In a primary market, companies sell stocks to investors for the first time. In a secondary market, investors buy and sell stocks that have already been issued.

Benefits of Stock Market

The stock market can be a great way to grow your wealth over time. When companies do well, their stock prices go up, and you can sell your stocks for a profit. The stock market can also be a good way to save for retirement.

Risks of Stock Market

How to invest in stock market.

If you are interested in investing in the stock market, there are a few things you need to do first. You need to open a brokerage account, which is an account that allows you to buy and sell stocks. You also need to learn about the different types of stocks and how to analyze them. Once you have done your research, you can start investing in stocks.

The stock market can be a great way to grow your wealth over time, but it is important to understand the risks involved before you invest. If you do your research and invest wisely, you can increase your chances of success.

Apart from these, you can look at all the essays by clicking here .

Happy studying!

Essays on Stock Market

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Stock Market Essays

Writing an essay on the stock market is important because it allows individuals to gain a better understanding of how the market works and its impact on the economy. It also provides an opportunity to explore the various factors that influence stock prices and investment decisions.

When writing an essay on the stock market, it is important to start by conducting thorough research on the topic. This includes gathering data on historical stock performance, market trends, and the impact of economic events on stock prices.

It is also important to consider the different perspectives on the stock market, including those of investors, analysts, and regulators. This will help provide a comprehensive overview of the market and its complexities.

When structuring the essay, it is important to provide a clear introduction that outlines the purpose of the essay and the key points that will be discussed. The body of the essay should present the research findings and analysis, while the conclusion should summarize the main points and provide insights into the future of the stock market.

Overall, writing an essay on the stock market is important for gaining a deeper understanding of the market and its impact on the economy. It also provides an opportunity to develop critical thinking and analytical skills, which are valuable in the world of finance and investment.

What Makes a Good Stock Market Essay Topics

When it comes to choosing a topic for your Stock Market essay, it's important to consider a few key factors. First, brainstorming is essential. Think about current events, trends, and controversies in the stock market. Consider what interests you and what you are passionate about. Additionally, it's important to choose a topic that is relevant and timely. A good essay topic should also be specific and focused, allowing you to delve deep into the subject matter and provide valuable insights.

Best Stock Market Essay Topics

The impact of social media on stock market behavior
The role of algorithmic trading in today's stock market
Analyzing the stock market implications of climate change policies
The psychology of stock market investing
Evaluating the impact of geopolitical events on the stock market
The future of cryptocurrency in the stock market
The ethics of insider trading in the stock market
Analyzing the stock market implications of technological advancements
The role of government regulations in the stock market
The impact of corporate governance on stock market performance
The relationship between stock market performance and economic indicators
The influence of behavioral finance on stock market trends
Evaluating the impact of corporate scandals on stock market volatility
The role of central banks in influencing stock market behavior
The impact of globalization on stock market dynamics
Analyzing the stock market implications of corporate mergers and acquisitions
The role of financial derivatives in shaping stock market trends
The impact of interest rate changes on stock market performance
The influence of investor sentiment on stock market movements
The future of sustainable investing in the stock market

Stock Market Essay Topics Prompts

Imagine you are a stock market analyst in the year 2050. What major trends and developments do you predict for the stock market?
If you could create a new financial instrument for the stock market, what would it be and how would it impact trading and investing?
You are tasked with writing a research paper on the impact of artificial intelligence on stock market behavior. What specific areas of AI would you focus on and why?
Pretend you are writing a letter to a beginner investor, explaining the key factors they should consider when making stock market investments.
Create a fictional scenario where a major global event causes unprecedented volatility in the stock market. How would you analyze and interpret the market's response?

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Trusting the stock market: an impact on stock market participation in nepal, impact of fdi and fii on indian stock market, studies on daily returns, the rivalry between nyse and nasdaq, a report on the wall street crash of 1929, the impact of dividend policy on stock price of commercial banks listed in dhaka stock exchange, what, am i worried, asicasic (australian securities and speculations commission), primary and secondary market, scco : summary for southern copper corporation, the leading gainers of the kryptonate market, the out of stock phenomena and its negative impact on buyers and businesses, the crash of 29 and its effects, examine the unsteadiness of stocks and the changes, the significance of the stock market: history, function, and future, relevant topics.

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Stock Market - Free Essay Examples and Topic Ideas

The stock market plays a very vital role in modern fiscal and social life. Investors want to increase the value of their assets by investing in the stock with higher expected earnings. For a company, issuing stocks is an important tool to raise funds from the public and expand the scale of the industry. Introducing big data analytics into stock prices prediction will reduce ambiguity and traditional options for many investors and market participants. It will guide the investors in overcoming the uncertainty and vagueness in predicting the stock prices at most times. The characteristic that all stock markets have in common is uncertainty, imprecision which is related to their short and long-term future state.

📘 Free essay examples for your ideas about Stock Market
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📖 Essay guide on Stock Market

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Prediction in the stock market has been a big research question for many years. If any system which can reliably predict the trends of the stock market be developed, it would make the users of the system wealthy. The purpose of prediction is to reduce uncertainty associated to investment decision-making. Stock market follows a random trend, which implies that the best prediction you can have about tomorrow’s value is today’s value. Unquestionably, forecasting stock indices is very difficult because of market inefficiency.

There are two types of analysis possible for prediction, technical and fundamental. Technical analysis is done using historical data of stock prices by applying machine learning and fundamental analysis is done using social media data by applying sentiment analysis. Social media data has high impact today than ever. It can aid in predicting the trend of the stock market. The method involves collecting news and social media data and extracting sentiments expressed by individuals.

What is Big Data and Data analysis?

Big Data can be defined as large sized or highly complex data sets which are generally difficult to analyse and process using traditional methods of data processing and analysis. These difficulties may include analysis of data, capturing of data, metadata, data storage, search, data transfer and sharing, visualization and data privacy.

Data analysis can be defined as the methodology utilized for analysis and process of random data to make sense out of it. There is a lot of quantitative and qualitative data which businesses accumulate. This data can be highly valuable if it is analysed and interpreted in the right manner. It is helpful towards developing useful insights and results.

Data Analysis and Big Data in the Stock Market

Data Analysis and Big Data are on the cusp of completely transforming how the stock markets will function and how investors will make their buying, selling and investment decisions. The technology of data analysis and Big Data is growing rapidly across industries, and the financial sector is not far behind in the development of data analysis and Big Data technologies.

Need for the Study

The need for forecasting the stock price is the main motive of the investor who is really interested in maximizing their financial wealth by making investment in financial assets like equity shares, bonds and debentures which are normally traded in the stock exchanges. Trading on the stock market requires accurate and timely inputs. The magnitude of data that is generated within the stock market on a daily basis is impossible to be managed, analysed and made sense of by human beings due to the sheer volume of data generated and the speed at which this financial data is being generated from various sources.

Big data for investment is no longer just a big firms’ game. Though investors still need to know the ins and outs of the stock market, big data analytics is the winning ticket to compete against the giants in the stock market. Big data analytics will help the investors, ranging from small retail investors, foreign institutional investors, mutual funds, to take well informed investment decision based on scientific thinking and rational approach.

Review of Literature

An extensive review of literature, in the area of forecasting of stock prices using big data, has been done to find the research gap and to get an idea of big data analytics in stock market. Etzioni (1976) forecasted the movements of stock prices and explained the difficulties in making prediction of financial market. One of the original works describing the application of evolutionary algorithms to stock trading can be found in Oussaide`ne et al. (1996, 1997). The usefulness of a model of this type depends upon its ability to forecast future changes in stock market valuations. Kavitha.S and Raja Vadhana.P, Nivi.A.N in their study on Big Data Analytics in Financial Market found that finance is the new sector where the big data technologies like Hadoop, NoSQL are creating its mark in predictions from financial data by the analysts. For this analysis, regular information and historical information of specific stock exchange are needed for creating predictions.

Hayes et al. (2000), Ranganathan and Samarah (2001) estimated how stock market price is fluctuated with announcements of enterprise resource planning implementation. Furthermore, Hendricks examined stock market reactions to enterprise resource planning systems implementations, supply chain management implementations, and customer relationship management implementations, respectively.

Prit Modi, Shaival Shah Himani Shah(2019) concluded that big data analytics can be used in many domains for accurate prediction and analysis of the large amount of data. As big data analytics is a one of the emerging information systems today, by implementing big data analytics, organizations expect to achieve excellence in their business. In this paper, we describe the relationship between big data analysis and stock market to understand its volatile nature. The study will also elaborate on a framework(Hadoop) on big data analysis based on proper assessment of fundamentals, operational efficiency, investor’s sentiments, market performance and probable future business prospects of the stock market behavior.

This is a qualitative descriptive paper based on articles, research materials and reports on big data analysis and stock market. The analysis part is divided into three headings: nature of big data, Application of big data in stock market and framework used in big data analysis.

Data and analysis have always been an integral part of trading and investing. A conventional capitalist goes through volumes of company annual reports, news, stock price charts and other forms of date before making a decision. Data is classified into structured (i.e. numerical or tabular) vs unstructured (i.e. text, images, etc). Unstructured data does not fall into a pre-determined model. This is the data gathered from social media sources, which help institutions gather information on customer needs. Structured data is already managed information by the organization in databases and spreadsheets. As a result, the various forms of data must be actively managed in order to form better business decisions Structured data is usually what a beginner trader would start playing around with.

Technology is growing at an exponential rate and today we are processing immense data if numbers are to be believed. A recent report reveals that the total data existing in the world will grow at a CAGR of 61% to 175 zettabytes by 2025 from 33 zettabytes in 2018. This is where the algorithms kick in, armed with machine learning and data analytics. Machines can inexhaustibly monitor data and news feeds, learn from them and act upon them. For an algorithm trader, the ability to process vast amounts of data at speed and scale is a primary edge.

Algorithmic Trading & Machine Learning

Algorithmic trading has become similar with big data due to the growing capabilities of computers. The automated process allows computers to carry out financial trades at speeds and frequencies that a human trader cannot. Institutions can more effectively curtail algorithms to incorporate massive amounts of data, leveraging large volumes of historical data to back test strategies, thus creating non risky investments. As algorithms can be created with both types of data, incorporating real-time news, social media and stock data in one algorithmic engine can generate better trading decisions. Though decision making can be influenced by information, human emotion and bias, algorithmic trades are executed solely on financial models and data.

Today, Machine Learning and Data Analytics are making trade more systematic. They complement each other and act as catalysts towards each other, improving ability to identify opportunities and reduce trading costs. Leveraging data in trading comes in two flavours.

A human trader usually uses anywhere from 5 to 8 technical indicators to help us ‘predict’ where a stock would go the next period. In the machine learning context, these indicators are called ‘features’ or ‘independent variables’. So the idea is to train the machine by giving it features that we think that have relationship with the dependent variable, be it next period’s return, volatility, etc. With present time computing power, one can easily feed it hundreds of features from different data sources, and the Machine Learning algorithm would figure out the relationship on its own. Then, when a new data is given, it would use what it has learnt to make predictions. This, in a nutshell, is what machine learning and Algorithms do in a stock market.

During the research phase, the ability to evaluate and learn effectively from huge amount of data gives investors an edge. During implementation phase, these tools can be used to gain the ability to quickly react to changing market conditions.

Financial analysis alone is not enough for examining share prices and share price behaviour. These financial analyses integrated with external factors like social and economic trends within the economy, political environment, consumer behaviour and preferences give rise to stable financial models. These have the potential of impacting the share prices of a particular stock or stocks prices within a particular industry.

Natural Language Processing

Natural language processing (NLP) is a field of linguistics, computer science and artificial intelligence. It is concerned with the interactions between computers and human languages. It helps how to program computers to process and analyze large amounts of natural language data. Using NLP, machines can analyze and learn from unstructured data and texts, like using it to create strategies based on sentiment analysis for trading.

Information Discovery

Data discovery is the collection and analysis of data from various sources to gain insight from hidden patterns and trends. It is the first step in fully harnessing an organization’s data to inform critical business decisions. In the data discovery process, data is gathered, combined, and analyzed in a sequence of steps. The goal is to make messy and scattered data clean, understandable, and user-friendly. Big data is making information discovery, which was hitherto impossible, like estimating sales at supermarkets before quarterly results announcements, by counting footfalls through analysis of satellite images of parking lots.

Reinforcement learning (RL) is an area of machine learning inspired by behaviorist psychology. It is concerned with how software agents ought to take actions in an environment so as to maximize some notion of cumulative reward. In short, the RL algorithm is concerned with finding the local/global maxima/minima of something that you’re trying to optimise. The machine is allowed to extract the historical data and figure out by itself the most optimal policy. When new data arrives, it would follow this strategy and hopefully arrive at an optimal outcome. Big data helps because it provides more example for the RL agent to explore and learn from. To use a non-trading example, AlphaGo, Google’s AI software which beat the best human Go players, played millions of games on its own to learn high-optimized strategies.

Social Media Algorithm

Another application of big data to be found for investing with market mood and sentiment is to use the finsent website http://www.finsents.com/. This website helps investors scan financial resources and content for the mood of the market. A trader can use this tool to find the mood of a particular sector such as real estate or commodity. Then he may develop his own algorithm from Quantopian.com and create trading algorithm from that website. This is powerful as a person can build his own trading algorithm based on market sentiment from big data software.

Market Sentiment Trading Platform

Hedge funds and institutional investors with large amount of capital are already mining through the web and using social media and blogging website and trading. The best way for an average retail investor is to do the same. A Hedge fund company called as Derwent Capital has already developed a trading platform named DCM Dealer with an Interface to allow retail investors trade on market sentiment from data from Facebook, Twitter, and other social media sites. This interface will help retail investors to review the market sentiment and trade in the market or individual equities or sectors they may choose.

The proposed framework for portfolio optimization using Hadoop can be explained using 5-step process: (a) Data Envelopment Analysis (DEA), (b) Validation of selected stocks, (c) Stock clustering, (d) Stock ranking, and (e) Optimization. All listed firms at a particular stock exchange are considered as the initial input to the framework and the output would be a set of stocks that would maximize the return and minimize the risk. The abstract framework for portfolio optimization is shown in figure 1.

Data Envelopment Analysis is used to narrow the sample of the firms by identifying the efficient firms. In order to authenticate these firms as potential candidates for portfolio optimization, the latest information about the company is retrieved and processed from latest news articles and tweets using text mining to the sentiments about the company in current context. The validated efficient firms are clustered into different groups to assist the diversification of portfolio. This is further followed by ranking of the stocks within each cluster and followed by asset weighting using algorithms. Each process is explained below.

Data Envelopment Analysis (DEA) is a non-parametric linear programming that calculates the effective score in a Decision-Making Unit (DMU) based on a given set of inputs and outputs. The DMUs with score 1 are considered to be competent. Apart from its applicability in the discipline of manufacturing, DEA can be used for stock selection. In the case of stock market, stocks form the DMU. The accepted four input parameters, namely, total assets, total equity, cost of sales and operating expenses and two output parameters, namely, net sales and net income, are to be considered. The stocks with score 1 are considered for the second stage.

Hadoop Framework for Sentiment Analysis

This stage involves processing unstructured data using Hadoop Map Reduce. This step complements the previous stage. Events like change in government, change of management and declaration of dividends have an effect on the market sentiment, which is not a criteria in quantitative analysis.

As first step, online news articles and tweets of the efficient firms are collected. Tweets can be obtained through Twitter API but it is limited to 1500 tweets. The ease-of-use and failover make Hadoop Map Reduce a popular choice for processing big data efficiently. Tweets and news articles are processed using text mining to obtain the positive and negative sentiments about the firm. Hadoop Map Reduce infrastructure quickens the distributed text mining process. Figure 2 shows the Map Reduce framework for distributed text mining. As shown in the figure, the company tweets and news articles are distributed to different Map processors to product data. This intermediate data is processed by the Reduce processors to give the aggregated result. The firms with positive sentiments are chosen for the next stage.

Stock Clustering

In this stage, the correlation coefficients of the stocks are calculated. The stocks are assigned to different clusters based on these correlation coefficients. The greater the number of 5 clusters more is the diversification. The goal for number of clusters and quality of clusters is to maximize similarity within the cluster and to minimize the similarity between the clusters. Many clustering algorithms can be used. This process reduces the portfolio risk through diversification of stocks. These resulting clusters consist of firms with alike business activity.

Stock Ranking

The appropriate stocks from each cluster are to be chosen. The stocks in each cluster can be ranked using Artificial Neural Network (ANN). Till the previous stage, only the internal factors of the firms were measured. At this stage, external factors like Gross Domestic Product (GDP) growth rate and interest rate are to be measured. ANN is a model for processing that consists of three layers: input, hidden and output layer respectively. The inputs for ANN can be GDP growth rate and interest rate and the outputs can be future return on investments. This results in ranking the stocks within a cluster.

Optimization

Previous stage leads to an assumption that the investor might choose the top stocks from each cluster. But the problem that still remains is: How much to invest in each stock? Previous study measures simple (equal) stock weighting method, a primitive method, to allocate the resources among the stocks. Hence the ranked stocks should be able to maximize returns and to minimize risk. Markowitz’s mean-variance model can be used at this stage. The distribution of the stocks in a portfolio will be formed at the end of this stage. Top 3 performing portfolio will be recommended to the investor.

The proposed framework tries to integrate both structured data from database (stock price, balance sheet data etc) and unstructured data from online news articles and tweets. Both the qualitative factors (Management of firms, etc.) along with quantitative factors (financial ratios) provides better alternatives for formation of portfolio. Top three portfolios that are generated will give the investors a choice to choose.

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A stock market can be defined as a “public entity for trading of company stock and derivatives at an agreed price; these are securities listed on stock exchange as well as those traded privately” (Anonymous: “Capital and derivatives Market” Para 2). At the beginning of the month of October, the year 2008, the global stock market size was determined to be approximately 37 trillion US dollars.

More so, estimation that has been carried out of the “total world derivatives market” has shown that the value of the derivatives market is about 790 trillion US dollars; a value which is more than ten times the whole global economy size. On the stock market, there is listing of the stocks and trading them. Both the buyers and sellers are brought together on this market (Anonymous: “Capital and derivatives Market” Para 3).

In the United States, the biggest stock market, basing on the market capitalization, is the NYSE – “New York Stock Exchange”. In addition to this, in the United States, we also have other stock exchange markets such as the Dow Jones Stock Market and NASDAQ. In Britain, we have the “London Stock Exchange’.

In Japan, there is the Tokyo Stock Exchange (TSE). TSE is number three in size by “aggregate market capitalization of its listed companies…it had 2,414 listed companies with a combined market capitalization of $3.1 trillion as of May 2010” (“China becomes the world’s third largest stock market” Para 7). In the United Kingdom, we have the London Stock exchange market.

It is located in the city of London, According to “Market Highlights for the first half –year 2010” (Para 3), by the month of August last year (2010), “the exchange had a market capitalization of US$ 2.63 trillion, making it to be the forth largest stock exchange in the world by this measurement and it is the largest in Europe” (“Market Highlights for the first half –year 2010” 1).

In Saudi Arabia, we have the Saudi Stock Exchange, also referred to as “Tadawul”. It is under the control of the “Saudi Arabian Monetary agency””. This is the largest stock exchange market in the region.

As it is pointed out by the “Saudi Stock Exchange”, it has “a market capitalization amounting to much more than US55 billion” (Para 1). This market has been increasing over the years beginning from the time it was set up in the year 1954. This stock exchange, being the only major stock exchange in the country, used to operate informally up to the middle of the 1980s.

Those traders who take part in the stock exchange market may be either just small individuals who wish to invest in stocks or they can be very big “hedge fund traders”. Among the exchanges that are carried out, there are those in which transactions are entered in to on a “trading floor” (physically).

This is done by a method referred to as “open outcry”. Such form of sale is employed in both “stock exchanges” as well as “commodity exchanges” in which those engaging in trade make bids and offers by word of mouth.

However, with advancing technology, there has emerged another form exchange in which trading is carried out in a virtual manner. In this, there is use of computers and transactions are carried out electronically without necessarily having the traders interacting physically.

Basically, the trades carried out are on the basis of an “auction market model”. Under this, the buyer engages in bidding for a definite price he is ready to pay and then the prospective seller asks for his or her desirable price from the buyer.

This may go on for sometime until the buyer and the seller meet at a common price that is deemed to be desirable for both parties; the buyer and the seller. At this point, a sale occurs. In a situation where we have two or more bidders (buyers) or askers (seller), one who comes first is the one who is sold to.

A stock exchange is meant to make it possible for the buyers and sellers to interact in order to exchange securities and by doing this, a marketplace is provided. Considering the New York Stock Exchange, this market is a “physical exchange” where the traders interact with one another physically, face to face and it is also a “listed exchange”. Unlike the NYSE, NASDAQ is a “virtual listed exchange” (Anonymous: “NASDAQ” Para 2).

In this particular market, all the trading activities are carried out electronically, over a “computer network. The trading process is the same as that followed by the New York Stock exchange market. The only difference between the two is that, in this market, the buyers and sellers interact electronically rather than physically.

Time and again, there has been deviation of active trading from “active exchange” (Ortega and Yalman Para 1). Ortega and Yalman point out that, “Securities firms, led by UBS AG, Goldman Sachs Group Inc. and Credit Suisse Group, already steer 12 percent of U.S security trades away from the exchanges to their internal systems” (Para 2).

They further projected that, there was even a probability of the level of that share going up (to eighteen percent) by the year 2010 “as more investment banks bypass the NYSE and NASDAQ and pair buyers and sellers of securities themselves, according to the data compiled by Boston-based Aite Group LLC, a brokerage consultant” (Ortega and Yalman Para 3).

Other than NASDAQ and the NYSE, in the United States’ stock market, there is the Dow Jones stock market. This was set up in the year 1896 and its founder was Charles Dow. This exchange is “an icon in the trading industry” (“Dow Jones Stock Market” Para 1). It is further pointed out that, basically “the Dow commercial average is a market index that provides a fast method to get to an understanding of how the exchange is fairing on any given day” (“Dow Jones Stock Market” Para 2).

This stock market does not provide “specifics” but instead allows the public to have the knowledge about the overall trends that are being followed by it. Several criticisms have been directed towards the “Dow Jones Stock Market” and these criticisms have been coming form the researchers.

They have criticized this stock market’s move not to include a large number of firms to carry out the representation of the general “market performance”. More criticisms have also arisen in which there has been disagreeing that “trading on all thirty stocks included in the Dow Jones stock market doesn’t always open at the same time each morning, thus skewing the day’s average” ((“Dow Jones Stock Market” Para 2).

However, despite these criticisms, the “Dow Jones Stock market Business average”, in the course of time, has determinedly performed similarly to the broader United States market and this is the reason why this stock market remains to be preferred by many people to the present day.

Considering the case in Saudi Arabia, in March 2010, it was reported in the “All Headline News” that the stock exchange of this country “had opened its doors to foreign investors as a leading investment firm announced that foreign investment in the country was expected to grow by 20 percent in the coming year” (“Saudi Stock Market” Para 1).

This move was taken to enable the foreigners to “invest in ‘Exchange Traded Funds’, an index fund traded on an exchange like a stock so as to offer foreign investors the opportunity to obtain broad-based exposure to the Saudi equity market” (” (“Saudi Stock Market” Para 2).

In the year 2008, FDI to Saudi Arabia was twenty four million US dollars. This country has also realized “stable improvement in its ranking in the World Bank’s Doing Business index” (“Saudi Stock Market” Para 11).

It moved to position 13 in the year 2010 from position 15 in the previous year and this makes this country to be “the highest ranked country in the Middle East ….the index measures ten different variables ranging from the ease of sharing a business and enforcing contracts to paying taxes and cross border trading”(“Saudi Stock Market” Para 11).

There are some occasions on which trading of particular shares is stopped; sometimes for a few hours or days or even longer. On an individual level, stopping to trade on a stock can take place during a drop.

This step assists in enabling people trading in stock to avoid losing their money. The simplest way to do this is to set “a stop-loss order on one’s brokerage on each of one’s holding to protect oneself against massive drops in the value of holdings” (Hewitt Para).

However, on other occasions, the capital market authority can stop trading a particular stock. It does this for several reasons and among these reasons is that, it may intent to punish inside trading and to regulate the market.

This is clearly evident on the Saudi stock exchange market where it is reported that the stock market has “cleaned up” following the actions taken by the Capital market Authority (“Saudi Stock Market” Para 5).

Lacoma (Para) points out that the most well-known stock market is the NYSE. However, all the stock markets work in the same way, the NYSE works. In these markets, the Capital Market Authorities can stop trading of a particular stock but this occurs in just some specific cases for certain organizations.

This can be carried out in the form of a suspension of a stock market. This implies that those who want to invest shall not have any influence in line with the “suspended stock”. Those people who are owners of this security have no power to sell it and those ready to buy it can not be able to do so.

In addition, the company is prevented from carrying out any adjustments on this stock. Suspensions take place at once and may remain effective, going on for a number of days but not beyond ten days in total (Lacoma Para 2). It is also important to note that suspension is applicable to a single company’s securities and stock and not on the securities and stock of the whole stock market.

Closing down the whole stock market can not be easy. The suspension is not aimed at paralyzing the economy in its entirety in whatever way. Those who wish to invest can go on trading on the stock market; buying and selling stocks from other companies on the market.

Suspensions are meant to make the companies to engage in reviewing their financial records. This in most cases follows suspicion of existence of fraud in a company or in the cases where big flaws have been committed in regard to making records. In some cases, suspension may occur following the need to make clarification of certain legislation. The suspension of stock is carried out in order to safeguard the investors against any uncertainties while all-inclusive investigation on the company’s activities is carried out.

A suspension may have a negative effect on the company’s stock on the stock market. After being suspended, in most cases the stock starts trading at a greatly decreased price. This comes about as a result of the investors being filled with uneasiness in regard to the suspension and look at the company in a suspicious manner even if findings after the suspension were not negative.

It is important to draw a distinction between a suspension and “halts and delays”. A halt takes place when the suspension of the stock is carried out by the company itself and it does this with an intention of sharing some important information with investors. This is always brief and may not go on for even more than an hour. A delay is just like a halt.

However, the difference is that it occurs at beginning of the trading day. In whichever the case; whether it is a suspension, a halt or a delay, all of them involve stopping of trading on the stock market.

Most of the people who invest have come to learn that the stock market is a quite volatile market for one to put his or her money in it. However, it is this market characteristic (volatility) that brings in returns which the investors obtain. Wagner defines volatility as “a measure of dispersion around the mean or average return of a security…….and Standard deviation can be used to measure volatility” (Para 2). This method of measuring volatility gives out information on “how tightly the price of a stock is grouped around the mean or moving average” (Wagner Para 2).

Wagner further points out that, in considering securities, “the higher the standard deviation, the greater the dispersion of returns and the higher the risk associated with the investment” (Para 3). Apart from this using this method in measuring volatility, it can also be measured by taking the mean range to every period, “from the low price value to the high price value” Wagner Para 3).

Basing on this, there is expressing of “the value obtained as a percentage of the starting point of the period….larger movements in the price creating a higher price range result in higher volatility and the lower price ranges result in lower volatility’ (Wagner Para 5).

It is important to note that, there exists a very powerful correlation between “volatility and market performance”. There is a tendency for the level of volatility to come down while there is an increase in the stock market and the level of volatility goes up while the stock market declines. The risk level moves up with the level of volatility and at the same time the level of returns goes down.

To illustrate this clearly, Wagner cites a research that was conducted in 2007 by “Crestmont Research” which was aimed at evaluating the past records of the relationship that exists between the “stock market performance” and the “market volatility”. This research utilized the “average range for each day to measure the volatility of the Standard & Poor’s 500 Index” (Wagner Para 6).

The results that were presented from the research report gave out an indication that higher volatility matches up with higher likelihood of a decreasing market and lower volatility matches up with a higher likelihood of an increasing market (Wagner Para 6).

Considering, the volatility ratio, according to “Investopedia”, volatility ratio is defined as “a technical indicator used to identify price ranges and breakouts” (Para). It utilizes a “true price range” to carry out the determination of a “true trading range” of a stock and is capable of identifying “situations where price has moved out of this true range” (Investopedia Para 1).

By being familiar with stock volatility as well as the volatility ratio, the investors are in a better position to trade wisely on any stock exchange market.

The stock exchange market brings together buyers and sellers in order for them to engage in stock trading. The traders on this market may be small individual investors or large business corporations. Most of these traders who have been in this business long enough, have come to learn that the stock market is a quite volatile market for one to put money in.

However, in whichever the stock exchange market, it is this market characteristic (volatility) that brings in returns which the investors obtain.

Among the major stock exchange markets in the world that have been looked at include; the New York Stock Exchange, NASDAQ, Dow Jones Stock exchange (all the three found in the U.S), the Tokyo Stock Exchange, The London Stock Exchange and the Saudi Stock Exchange.

There comes a time when the capital market authority may stop trading a particular stock. This may lead to the suspension of the stock. This occurs for several reasons and among these reasons is that, the company involved may not be having right records or there is likelihood of having fraud in the company.

More so, there might be some legal obligations that are supposed to be met by the company involved. However, not all the trading is stopped on the market but it is only one company’s stock and trading will always go on as usual with stocks of other companies that are not affected with the suspension.

Anonymous. “Capital and derivatives Market ”. 2010. Web.

“ China becomes the world’s third largest stock market ”. Economic Times. 2010. Web.

“Dow Jones Stock market”. Cheap Stock Trading. 2009. Web.

Investopedia, “ Volatility Ratio ”. 2011. Web.

Lacoma, Tyler. “When does the stock market suspend trading? ” 2010. Web.

“Market Highlights for the first half –year 2010”. World Federation of Exchanges. 2010. Web.

“ NASDAQ – What is NASDAQ? All about NASDAQ stock market ”. Hubpages Incl. 2011. Web.

Ortega, Edgar, and Yalman Onaran. “UBS, Goldman threaten NYSE, Nasdaq with rival stock markets”. Bloomberg, 2006. Web.

“Saudi Stock Exchange”. Economy Watch. Web.

“Saudi Stock Market Opens to foreigners”. All headline News. Web.

Wagner, Hans. “ Volatility’s impact on market returns ”. 2010. Web.

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Stock Market - List of Essay Samples And Topic Ideas

The stock market refers to the aggregation of buyers and sellers of stocks, representing ownership claims on businesses. Essays might explore its operation, the role it plays in an economy, and the factors affecting stock prices. Discussions could also delve into stock market crashes, investment strategies, or the broader implications of stock market trends on global finance. A vast selection of complimentary essay illustrations pertaining to Stock Market you can find at PapersOwl Website. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

Soccer and Stock Market

When reviewing previous papers, we can touch the remarkable role of emotions that would suggest alternative courses of action affecting behavior of individuals and thus the decision-making, As a simple example the incidental anger happening in one situation will elicits automatically a motive to blame individuals in other situations even though the targets of such anger have nothing to do with the source of the anger (Tedeschi & Quigley 1996), and that typically occurs without awareness, as if Emotions play […]

Stock Market and Soccer

The interest in the role of sentiment, mood, feelings and emotions in finance and business stems from the work of (Kahneman and Tversky, 1979). Results in this area was built on evidence from experimental psychology and economics and studies to explore how investors are affected in light of information's evaluation, risk, gains. The applying the direct and the indirect measurement on the sentiment and feelings of the investors as an attempt to discover its role on the performance of stock […]

What was the Great Depression?

The Great Depression was a dramatic shift in the US economy leaving people homeless and people didn't have a way to make a living. .This made the government create new programs called the New Deal it however failed to stop the Great Depression and these programs wasted a lot of money..The Great Depression started in 1929 it was the biggest economic downfall in US History it left a lot people without jobs and banks started going out of business all […]

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The CAC 40 – the Paris Stock Exchange

The CAC 40: stands for "Cotation Assistée en Continu", which may be translated to continuous aided mercantilism, and is that the hottest benchmark index for funds finance within the French securities market. This index provides a general plan regarding the direction of the "Euronext Paris", that is that the largest stock market in France once referred to as the Paris stock exchange. CAC 40 represents the capitalization-weighted measure of the foremost forty vital values among the very best one hundred […]

Open to Growth in America

Beginning in 1931, the idea of being open to growth blossomed into a large amount of literature, permeating the experiences of the following times: the 1930s with the Great Depression, the 1940s with World War II, and the 2000s with 9/11. During the Great Depression, our country was in poverty. In October of 1929, known as Black Thursday, the stock market crashed. The mass destruction and ensuing chaos led to stockbrokers jumping out of the investment buildings where they worked, […]

Causes of the Great Depression and the Lasting Impacts

Abstract This paper discusses the causes of the Great Depression and the lasting impacts it had on the U.S. Many people attribute the sole cause of the Great of Depression to the stock market crash of 1929 but there are actually multiple contributing factor. The stock market crash propelled the Great Depression forward but many other causes contributed to the length and depth. Keywords: Great Depression, Stock Market The 1920's were a time of low unemployment, mass production of goods, […]

The Causes of the Great Depression

Imagine losing all your money in a blink of an eye after it being flowing into your pocket rapidly in the last period and then you either have to depend on others or sell what you have and stand in long lines for food. This is what happened to average families during the greatest economic downturn in the history of the U.S. Before the great depression the U.S was advancing exponentially during what was called the Roaring Twenties(Ellen Parson,2002). The […]

Successful Business of Apple Company

Apple is the most successful company in terms of technology development. Their profits, and product growth have been transparent in our eyes. The company's capitalization has reached 1.003 trillion dollars. On other portals, the value of the company still did not exceed a trillion. At the same time on the website of the trading platform - Nasdaq - the company's capitalization has already exceeded 1.008 trillion dollars. Apple's phenomenal record is explained not only by the successful business and innovation […]

Gender Roles during the Great Depression and the Cold War

A role or behavior learned by a person as appropriate to their gender which is determined by the prevailing cultural norms is called a gender role. Both men and women have been told how to behave, dress, and even present themselves to the public. An example of gender roles in society is women are supposed to be feminine, graceful, polite, nurturing, emotional, take care of kids, cook, clean; while men are supposed to be muscular, aggressive, tall, take care of […]

January 20th in History

"January 20th is an important day in history. It is an important day because Prohibition took effect, the National Board of Censorship was created, the United States Senate allowed the Navy to lease Pearl Harbor as a naval base, United States President Harry S. Truman in his inaugural address for a full term as President, and that the stock markets fall. Prohibition succeeded in cutting overall alcohol drinking, and use during the 1920s. Pre-prohibition levels stayed low until the 1940s. […]

The Essence of Stock Ownership: Beyond Numbers and Charts

Imagine you're in a bustling marketplace, surrounded by vendors selling various goods. Each stall represents a business, and you have the option to invest in any one of them. Buying from a vendor doesn’t just mean you get a product; it also means you have a stake in that vendor’s success. In the world of finance, owning a stock is much like owning a piece of a marketplace vendor's stall. A stock, in its simplest form, represents ownership in a […]

Black Tuesday: the Day that Shook the Financial World

The somber occasion of Black Tuesday, transpiring on October 29, 1929, etches itself as a cataclysmic juncture in the annals of financial history, heralding a precipitous descent into the maelstrom of the Great Depression. The seismic shockwaves emanating from the stock market crash reverberated across the globe, precipitating unparalleled economic upheaval and inaugurating a decade fraught with fiscal adversity. Comprehending the magnitude of Black Tuesday necessitates a nuanced examination of the precipitating factors, immediate aftermath, and enduring repercussions on the […]

The Cereal Aisle: a Look at Kellogg’s Stock Performance

In the world of investment, certain stocks serve as bellwethers for their respective sectors, and when it comes to the consumer goods sector, Kellogg's often stands out as a staple. Known for its dominance in the breakfast cereal market, Kellogg's has expanded its portfolio over the years to include a variety of food products, making it a significant player in the global food industry. This essay delves into the performance of Kellogg's stock, examining its historical trends, current market position, […]

Deciphering Kroger’s Stock Market: a Closer Look

Kroger, a household name in the realm of grocery retail, stands as a cornerstone of many communities across the United States. Yet, behind its bustling aisles and stocked shelves lies a web of ownership that spans both individuals and institutions. Founded in 1883 by Bernard Kroger in Cincinnati, Ohio, the supermarket chain has since grown into one of the largest retailers in the country, boasting thousands of stores under various banners, including Kroger, Ralphs, Fred Meyer, and others. However, despite […]

Dancing in the Financial Cosmos: Navigating the Intricacies of the Stock Market Game

Within the dynamic tapestry of financial landscapes, a mesmerizing enclave beckons both novice adventurers and seasoned maestros—the Stock Market Game. It is a realm where the ebb and flow of virtual capital mimic the unpredictable dance of fortunes, a captivating space where participants traverse the highs and lows of financial acumen with only the ethereal tether of simulated wealth. As players embark on this odyssey, they find themselves at the helm of a virtual portfolio pregnant with possibilities. Armed with […]

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Stock Market Essay Examples

Stock market: gamble money or ample money.

A question we have been hearing and reading about for years and might continue to hear for decades to come, But The Nobel Laureate Eugene Fama Worked a Lot towards establishing a theory which explains the working of efficient Capital Markets. Eugene Fama was a...

Corporate Governance Practices in Emerging Markets: the Case of Gcc Countries

Different CG indices have been established in the literature, mostly depended on developed countries. But, very small work has been carried out on the developing and emerging markets. An attempts is carried out to establish know how of the emerging markets of Asia Especially established...

The Devastating Events of 9/11 and Their Impact on the 2001 and 2002 Stock Markets

In the early morning of Tuesday, September 11th, 2001, in New York City, two commercial airliners collided with then, the tallest buildings in the world, the World Trade Centre towers. There was also another commercial jetliner that crashed into the Pentagon. This devastating event led...

Stock Splits and Market Reaction

Stock splits are like optical illusions but in reality they are only adjustments in the number of shares outstanding. The company’s equity and the value of shareholders’ holdings remain unchanged. The study conducted reveals that there exists a positive market reaction post-split announcements in case...

Security Trading in a Stock Exchange Market

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Depiction of the 2008 Financial Crisis in the Big Short

The Big Short (2015) by Adam McKay reasons the publics frustration and anger towards a fraudulent and unequal system that left millions unemployed and homeless during the Great Financial Crisis. The film brings together three separate storylines, to tell the story of the 2008 Financial...

An Underdeveloped Financial Market of China

China’s economy has seen extraordinary growth in the 21st century, driven by market-oriented reform, industrialization, and urbanization. On average, GDP has grown nearly 10% annually since 2000, making China the world’s second largest economy. However, the growth rate has slowed to approximately 6. 5% in...

Bank Shares Gain as Global Markets Reach a New High

On Oct. 3 Wall Street advanced on higher treasury yields, which lifted financial stocks. Positive news that Italy would cut budget deficit and reduce debt was supportive, and many bank stocks which were underperforming during the year, gained. Although, some of the small caps and...

Efficacy of Securities Regulations in Domestic Market

A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some jurisdictions the term specifically excludes financial instruments other than equities and fixed income instruments. In some jurisdictions it includes...

Impact of Change of Interest Rates on Performance of Market Returns

Financial markets play a crucial role in the foundation of a stable and efficient financial system of an economy. Numerous domestic and international factors directly or indirectly affect the performance of the stock market. This paper explores the possible relationship a stock market’s performance and...

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