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Showing posts from September, 2017

History of the Stock Market

With some exceptions in the world, a country’s economic success relates to the health of the country’s stock market. Despite the existence of various types of “bubbles” throughout history, stock market correlates with the expectations about the performance of companies in the real world. As companies cannot always do well, the same happens with the stock market throughout its entire history. Since the early days of the stock market, “booms” and “crashes” succeed each other around the world. The effects of a stock market’s sudden and massive drop in value, can have a chain reaction and cause disruption in almost every industry within an economy. On the other hand, an up trending stock market is directly related to the positive sentiment in the economy and the increased confidence levels of businesses and investors. While this system has certainly been around for many years, it is a fairly new economic structure, having only been invented and systematized a few hundred years ago. So how …