Showing posts with label stock market. Show all posts
Showing posts with label stock market. Show all posts

Tuesday, November 10, 2009

Guide to Stock Market Depressions

10 Worst Stock Market Crashes

10th Worst Stock Market Crash (1932 – 1933): This crash required the longest recovery time of all the 10 crashes. The combination of the tech bubble bursting and the September 11th terrorist attack served a deadly blow to the stock market, but relative to markets past, this was a minor one. Date Started: 1/15/2000 Date Ended: 10/9/2002

Total Days: 999 Starting DJIA: 11,792.98 Ending DJIA: 7,286.27 Total Loss: -37.8%

9th Worst Stock Market Crash (1916 – 1917): This market suffered about a 40% loss. Date Started: 11/21/1916 Date Ended: 12/19/1917 Total Days: 393 Starting DJIA: 110.15 Ending DJIA: 65.95 Total Loss: -40.1%

8th Worst Stock Market Crash (1939 to 1942): It was one of the most grueling. It took nearly 3 years to recover from this crash! With the attack on Pearl Harbor, the markets had a very tough time. Date Started: 9/12/1939 Date Ended: 4/28/1942

Total Days: 959 Starting DJIA: 155.92 Ending DJIA: 92.92 Total Loss: -40.4%

7th Worst Stock Market Crash (1973-1974): Another long market crash -one that many people still remember (think Vietnam and the Watergate scandal). This crash lasted for 694 days before bottoming out. Date Started: 1/11/1973 Date Ended: 12/06/1974 Total Days: 694 Starting DJIA: 1051.70 Ending DJIA: 577.60 Total Loss: -45.1%

6th Worst Stock Market Crash (1901 – 1903): This is the oldest crash to make the list (DJIA records are not available before 1900). Date Started: 6/17/1901 Date Ended: 11/9/1903 Total Days: 875 Starting DJIA: 57.33 Ending DJIA: 30.88 Total Loss: -46.1%

The 5th worst stock market Crash (1919 – 1921): This crash followed a post war boom (Stock prices rose 51%). After the crash bottomed out in August of 1921, this decade saw tremendous growth in the stock market and the economy (often called the roaring twenties). Date Started: 11/3/1919 Date Ended: 8/24/1921

Total Days: 660 Starting DJIA: 119.62 Ending DJIA: 63.9 Total Loss: -46.6%

The 4th worst stock market crash in U.S. History Although this is the shortest market crash observed, it was a deadly one. Investors saw almost half their money disappear in just two months. This crash started the "Great Depression." Date Started: 9/3/1929 Date Ended: 11/13/1929

Total Days: 71 Starting DJIA: 381.17 Ending DJIA: 198.69 Total Loss: -47.9%

3rd Worst Stock Market Crash (1906 – 1907): This crash was called the "Panic of 1907." The U.S. Treasury department bought 36 million dollars worth of government bonds to offset the decline Date Started: 1/19/1906 Date Ended: 11/15/1907

Total Days: 665 Starting DJIA: 75.45 Ending DJIA: 38.83 Total Loss: -48.5%

2nd Worst Stock Market Crash (1937 – 1938): Just when investors thought the market was finally good again, following a recovery of almost half of the great depression losses, the market plunged again due to war scare and Wall street scandals. Date Started: 3/10/1937 Date Ended: 3/31/1938

Total Days: 386 Starting DJIA: 194.40 Ending DJIA: 98.95 Total Loss: -49.1%

Worst Stock Market Crash Ever: 1932 Stock Market Crash: Investors lost 86% of their money over this 813 day beast. This market crash combined with the 1929 crash, made up the great depression. The full recovery didn't take place until 1954. Date Started: 4/17/1930 Date Ended: 7/8/1932

Total Days: 813 Starting DJIA: 294.07 Ending DJIA: 41.22 Total Loss: -86.0%

Mansi aggarwal writes about stock market depressions. Learn more at http://www.stockdepression.com

Friday, October 23, 2009

Stock Market Guide

Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals. Thus the bulls and bears have always been charismatic. Now millions of people invest in the stock market to make good money. The aura of the place is such that it is swarming with people any hour of the day and any season of the year. But only few know that how the stock market came into existence or what actually are its origins.

A short encounter with the past

The oldest stock certificate was issued in favor of a Dutch company in 1606. The purpose of this company was to benefit from the spice trade between India and the Far East. During the 18th and the 19th centuries the trade of spices drifted to England when Napoleon reigned over the place. With the development of United States of America as a colony to British and Alexander Hamilton (the first US secretary of the Treasury) flourished the American Stock Exchange. Hamilton played a crucial role in encouraging the trading in the Wall Street and Broad Street in New York. The New York Stock and Exchange Board now popularly known as the New York Stock Exchange was organized by the traders of New York in 1817 when trade and commerce bloomed there.

A precise survey of the Western stock market

• The Wall Street- a place where the whole of 18th century trade and commerce took place, Wall Street is a recognized place across the globe. The street was termed as Wall Street since it ran alongside a wall that was taken as the northern boundary of New Amsterdam in 17th century.

The Wall Street is known for the J.P. Morgan’s million dollar merger that created US Steel Corporation, the ruinous crisis that resulted in Great Depression and the “Black Monday” of 1987.

• The NYSE or the New York Stock Exchange is perhaps the foremost and so the oldest stock exchange in United States that is believed to be born in 1792. The significant aspects related to NYSE include the Buttonwood Agreement when 24 stockbrokers and traders of New York signed this accord and established the New York Stock Exchange and Securities Board which is now recognized as the NYSE; the considerable swings that the NYSE saw during the 20th and 21st century; the hitting of the 100 and later even 1000 mark by the Dow around 1971 and the mark of 10,000 that the Dow scaled in 1999.

• NASDAQ is the National Association of Securities Dealers Automated Questions. It is an apparent or virtual stock market where all trading is done through the electronic media. NASDAQ, the global and the largest electronic stock market today was first established in 1971 in United States at the time when computers were not as developed as they are today and it was very difficult to compute. The main exchange of NASDAQ is in United Sates while its branches can be found in Canada and Japan and it is also linked to markets of Hong Kong and Europe. NASDAQ functions by purchasing and selling the over- the- counter or OTC stocks.

• AMEX-was discovered in 1842. The putative father of the institution is Edward Mc Cormick (the commissioner of SEC) who endowed it with its current name. It started its journey as the New York Curb Exchange and its name is factual. The AMEX in contrast to the NYSE operates with the small and more dynamic companies some of which even make it to the NYSE board.

Mansi aggarwal writes about stock market. Learn more at http://www.stockmarketstory.com .

Wednesday, October 21, 2009

Beginners Guide to the Stock Market

Are you tired of showing up for work, and you want to be a business owner who owns your time? And your imagined type of work is to sit back, watch the business grow and collect the profits at the end of the day? Or in a more complex scenario, you will be asked to constantly monitor the news and your call inside the business will be dependent upon economic news and market news? Others may probably think that these are what dreams are made of, but for others they know this is true. And if you are thinking about people who are involved in stocks and the stock market, then you are correct.

The trading of the stocks which are considered as financial instruments in the stock market is considered as one of the better ways to build income and this has been made by the past players of the stock market. Knowing what these financial instruments are is just the start, it is also important to understand what the market is- the stock market-and how this market operates.

The simplest definition calls the stock market as the public market where stocks and derivatives are traded at the set price. There are those securities that are listed on the stock exchange that are traded in private. Participants in the stock market are varied, some represents large financial institutions and some are considered as small and individual investors. Whatever orders that they initiate will end up with the professional that mans the stock exchange and the professional is the one who executes the order of the traders whether these are for "buy" or "sell".

Exchanges can be considered as physical locations and there is also the virtual exchange. In physical exchanges, trades are carried out on the trading floor and trades are done through open outcry. This way, traders cry out and enter their trades verbally. The other kind of stock exchange is the virtual kind, and this is linked by a network of computers and the trades are made electronically. The world's largest New York Stock Exchange is considered as a physical and a listed exchange where listed securities can be traded. The typical orders will start from traders going to the floor broker up to the floor trading post specialist that trades the order. This specialist matches any buy and sells orders, and when trades are made this is reported on the tape and sent to the brokerage firm. An example of a virtual exchange is your NASDAQ in the US where trading are done online. The process is similar; the only difference is that traders are matched electronically.

Simply put, it is the role of the stock market to serve as the meeting place for traders for trading, whether that's real or virtual. The stock market is considered as an important institution for the economy and in a way can serve as a barometer of how the economy performs. Right now, the world's stock market is estimated at $36.6 trillion USD as of October 2008. But if the derivatives market is to be estimated, then this market is tagged at $791 trillion.

Trying to find information on the stock market for beginners? Look no further, we cover everything you need to know about learning the stock market for beginners. Head to http://www.learn-how-to-invest.com/stock-market-for-beginners to get started today!


A great article from Jeff, explaining basic stock market issues.

Tuesday, October 13, 2009

Stock Market: Understanding Its Nature

Have you noticed the numbers rolling by on the bottom of your screen during a news cast? Those are very important to the people who steadfastly watch the stock markets for they make their fortune with stocks.

To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market and the money taken in from those becomes the company’s stocks.

There are several major stock exchanges in the world where shares are traded. Company’s stocks are increased and decreased each day.

One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a United States based stock market. It’s the world’s first electronic based stock market. It also trades more shares each day than any other stock market which means it has the most impact on stocks.

Another large stock market that is United States based is the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this is what they are referring to. Many stocks are introduced on the Dow.

Many other countries also have a great impact on stocks. In Europe almost each country has their own stock market this includes Portugal, Germany and Lisbon. The people living and working there follow invest in the stock market there and just like in North America the stocks rise and fall.

The people who handle the buying and trading are called stock brokers. Their job is to sell and trade the shares that their clients request. It’s a demanding and rewarding job being involved directly in stocks this way. Stock brokers can make a lucrative income and the ones that study the markets and understand all the ups and downs have a definite advantage.

For the everyday person to get involved in stocks they need to do a bit of research. It might be wise if a large amount of money is involved to talk to a stock broker. Their job is related to stocks and no one is better qualified to assist you.


Stock brokers are paid on commission and therefore their drive is to invest in shares that will ultimately turn a profit. Often a stock broker has extensive knowledge with just a few stocks and he concentrates on those. If you decide to invest in a share that a certain stock broker is very well versed in, it might be prudent to have him or her handle your dealings. They can offer the best advice as to when to buy and when to sell.

There are other avenues available for people interested in stocks and that’s the online stock trading companies. Many of these companies allow anyone to sign up and buy and trade their own shares. This can be a great way for someone to be introduced to the world of stocks and with some research and practice they can make themselves a profit.

There are also many people day trading for a living, making obscene amounts of money!

The Main Stock Markets

New York Stock Exchange (NYSE), American Stock Exchange (AMEX), and NASDAQ are the main markets that you often hear among the many different markets in the US.

The markets are basically where people and companies trade securities. The market is the arena in which the players gather to trade.

The New York Stock Exchange has been around since 1792. It is located on Wall Street in New York City. The NYSE is the largest and best-known stock exchange in the country. It also has very stringent requirements for companies to join its listings. A company must be financially strong and show signs of being an industry leader to join the NYSE. Companies strive to belong to this market, and even pay annual fees for membership.

When a brokerage describes itself as a member of the NYSE it means that the firm has bought a seat on the floor of the NYSE. This means that there is actually a employee on the floor of the exchange buying and selling stock. This is an expensive investment for a firm, costing well over a million dollars.

The American Stock Exchange is similar to the NYSE in that it conducts its trading on a trading floor. The floor is filled with traders who buy and sell securities. The AMEX has been located in Manhattan since 1921. It is known as a major exchange for not only stocks, but also options. You will tend to find slightly riskier and smaller stocks listed on the AMEX, which operates under the NASDAQ-AMEX Market Group, a subsidiary of the National Association of Security Dealers. NASDAQ, or the National Association of Securities Dealers Automated Quotations, is the youngest of the three major markets. It may also be the one you have heard the most about through the news. It lists just about every stock in the industry, but it is best known for listing technology companies. In fact, it is where you will find many major technology stocks, including Microsoft and Intel. It was launched in 1971 and was the first over-the-counter stock market. It links buyers and sellers via a computer network.

Brokers and dealers will market the stocks by maintaning an inventory in their own accounts. They will buy or sell when they receive an order from an investor. You will find that start up companies that are issuing stock in an initial public offering will often list on the NASDAQ.

When it comes to buying stock, knowing where to find certain types of stock is important. Each market often specializes in slightly different types of stocks.