Since the downturn of the economy exists, the stock market hasn't been doing to well and this has affects many institutions that primarily make money from stock transactions and investments in the stock market. ... They won't even consider a start to invest until they see signs of recovery. Many institutions that had investments in the stock market have seen their portfolios decrease. ... The stock market is very volatile. ... The stock market is still very volatile throughout daily, which makes people afraid of investing in the market knowing that their investment has a good chance...

• Word Count: 1270
• Approx Pages: 5
• Grade Level: High School

During the same period, interest rates around the world were lower than usual, which made investors to seek securitized loans that provided relatively higher returns. ... However, no executive members faced consequences of their actions, which brought a lot of pain to the people, who invested in the securities sold by the bank. ... After the financial crisis, Citigroup reported losses of $65 billion dollars.6 The stock price chart below from Yahoo Finance clearly shows the mighty company, who suffered a severe decline in their stock price. Figure 1: Citigroup Stock Price Chart over the perio...

• Word Count: 1919
• Approx Pages: 8
• Has Bibliography
• Grade Level: High School

Prominent businessmen repeatedly borrowed money to purchase more stocks with the intention of paying back the loan from the profits of the stock they bought. ... Now known as "Black Thursday" the stock market took a downward trend. Then on Black Thursday, almost a week later, the bottom fell out of the stock market. ... Fremon writes the confusion and panic of the American citizens with this statement, "For many investors, October 29, 1929 was the worst day of their lives. ... He established the Securities and Exchange Commission, which strictly regulates the stock exchange in an effort to...

• Word Count: 1548
• Approx Pages: 6
• Has Bibliography
• Grade Level: High School

From 1922, shares on the New York stock exchange rose in value, this rise continued for eight years afterwards. ... Investor's losses were estimated at $26 billion. The stock market had crashed due to over-production, more goods were being produced than people could afford. ... It was due to this decline that triggered the large amount of share selling on the stock market. However there were other underlying reasons as to why the New York Stock Exchange crashed. ...

• Word Count: 1610
• Approx Pages: 6

This effectively passed on the risk to the next investor. ... This along with the fact that an investor could purchase a CDS, credit default swap, an insurance policy against the mortgage defaulting within the CDO, made for a win-win situation with investors. These investors were unaware of the true risk behind each of these CDOs and unfortunately at the same time they were leveraging higher than ever. ... If consumer confidence isn't present, there is a lack in demand, if there is a lack in a demand there is a decrease in investor confidence. Investors aren't willing to hire more em...

• Word Count: 2201
• Approx Pages: 9
• Has Bibliography
• Grade Level: Undergraduate

Many believe that the stock market crash of 1929 was the immediate and direct cause of the Great depression. However, the Great Depression was caused by many specific economic events leading up to the stock market crash of 1929, such as unequal distribution of wealth among the people and companies, bank failures, major decline in industries, and the collapse of the international trade. ... Even some of the nation's largest banks were investing heavily into the stock market and making risky loans that could easily cause the bank to lose all their money. ... While the collapse of the stock ...

• Word Count: 1629
• Approx Pages: 7
• Has Bibliography
• Grade Level: High School

One factor that can cause economic growth is through investment, for example, by increasing the quantity of natural resources a country has, or in other words, by increasing their capital stock. ... In addition, technological improvements add to economic growth in the same way that increases in the capital stock do: by increasing worker productivity. ... Finally, Lower interest rates in the short term can lead to more economic growth as lower interest rates would make borrowing less expensive and will encourage firms to invest and consumers to spend, increasing the confidence of the labor forc...

• Word Count: 1462
• Approx Pages: 6
• Grade Level: Undergraduate

Many of the problems that led to the Great Depression and the actions of FDR pre-dated the stock market crash that sank the US into economic crisis. ... Most people, including investors that should have known better, felt that there would be no end to the expanding economy. ... The common trend was to throw as much money into the stock market as possible because it was a sure bet. ... The actions of the FRB created a stock market and property boom that merely served to fuel speculation. ... First on Black Thursday, October 24 and then on Tragic Tuesday, October 29, 1929 the nation suffered...

• Word Count: 1758
• Approx Pages: 7

Executive Summary The Australian economy is widely regarded as an influential force in the market; in fact, with a GPD of $1.488 trillion (US) as of 2013,1 it is the 12th largest in the world. Australia currently operates as an open, export-oriented, free market economy, a significant contributor to...

• Word Count: 2267
• Approx Pages: 9
• Has Bibliography
• Grade Level: Undergraduate

In the last few years there has been a resurgence of the Keynesian school of though since the collapse of the stock market in 2008. ... This theory focuses on the idea that as the levels of consumption increase, more money enters circulation and the individual has more money to invest back into the economy. ...

• Word Count: 1814
• Approx Pages: 7
• Grade Level: Undergraduate