Why all the Stock Exchanges Collapsed

Common reasons to the simultaneous collapse of stock exchanges worldwide. In the wake of the global credit crunch, stock exchanges throughout the world collapsed in tandem. Why? 1. All of them - from the mighty Wall Street to the puny Macedonian Stock Exchange - have come to depend on a regular and inexorable flow of foreign portfolio capital to sustain the bull market. When this influx of hot, speculative funds ceased and foreigners began to sell their holdings, the bubbles burst everywhere at once. 2. The sharp reversal from negative real interest rates (in 2000-2001) to high positive interest rates (in 2004-7) rendered equities unattractive.

Readjusting trend lines

Drawing a trend line is just like connecting the dots. By drawing a line at the highs of a stock you get a resistance level. By drawing a line at the lows of a stock you get a support level. Drawing a trend line is just like connecting the dots. By drawing a line at the highs of a stock you get a resistance level. By drawing a line at the lows of a stock you get a support level. The theory is that stocks will bounce up from support and bounce down from resistance. Also when a stock breaks a trend line is it likely to stock will have a big run in the same direction it broke. Drawing a trend line and using them to trade is much more of an art then a science.

Common Stock and Preferred Stock

Both common and preferred stocks are stocks issued by companies. Most company stocks which are publicly traded in an exchange are common stock. There are some key differences between common and preferred stocks. Common Stocks They give partial ownership of the company. They offer special voting rights, usually one vote per share. Share holders have preemptive rights (right to maintain their proportional ownership). Share holders receive dividends after preferred share holders. They may or may not receive dividends (subjected to director board decisions), and usually get lesser and variable dividend amounts.

Why The Stock market was born

I thought it might be fun to talk about how the stock market was born. Many people do not realize the importance of the stock market. I thought it might be fun to talk about how the stock market was born. Many people do not realize the importance of the stock market. The stock market was born out of necessity. It helps companies grow as well as helps the average citizen fight against inflation. Imagine you are a business owner. You own a restaurant that is making $100, 000 a year in net profit. It works out great but you want it to grow, you can"t afford the $500, 000 it cost to open up another restaurant.

Don t Be Fooled by What They Are Telling You

PROFIT CONFIDENTIAL December 3, 2008 Courtesy of the National Bureau of Economic Research (NBER), on Monday we had the first "official" notice that the U.S. was in a recession. In a statement Monday, December 1, 2008, the NBER said, "The committee determined that the decline in the economic activity in 2008 met the standard for a recession." Hence, one year after the recession started, we have some formal word that we are in a recession. Now, here's what I said back on November 13, 2006, one year before the recession started: "You've been reading my articles over the past few months and have seen how negative I've become on the U.