Stock Market Essay

740 WordsJan 29, 20153 Pages
I Would Not Invest in the Stock Market This project gave me an experience to understand what stock is and how it works. In the past, I had heard a lot of people around me talking about stocks and how they gained and lost money because of stocks. I was curious about how stocks behave and what actually make them go up and down. Within the eight weeks, I got all the answers. I invested on Kohl’s Corp. (KSS) and Starbucks Corporation (SBUX) for these eight weeks. I kept track of the companies and I felt nervous about the change of their prices. I now can understand why some people care about how well those companies are doing. During the whole project, I realized the instability of the stock market. Even though a stock had risen its price for many times, it could suddenly go down for over 50 percent or even hit the bottom. Although investing in the stock market for a long term can make money at the end, I would not invest in it since there are so many unknown variability and risks. In general, I got 6.73 percent return when I sold my stocks. It was a pretty good result but it was not my highest profit during the eight weeks. In the fifth week, I received 7 percent return. I thought my stocks were going up since they had gone up for a while, however, the price of KSS suddenly went down about five dollars on November 14. I felt surprised and disappointed since this stock had been doing so well that it kept going up for 6 weeks. It proved that there are variability and risks in the market that nothing is sure. A person can make billions of dollars in only one night because of stocks but he or she can also lose his or her life savings on one night in the stock market. I found that several possible factors may affect the market trend, Dow Jones Industrial Average in the stock market. When we started the project, the government shut down and many people got lay-off. This

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