Stock Market for the Win Research Paper Example | Topics and Well Written Essays - 1500 words

Stock Market for the Win - Research Paper prototypeIt is time for the enthronement world to reap the benefits that we have seen transform and improve the rest of our world. (Kimmel and Hirsch, 2009, p. xiv). The time has become for those individuals who have yet to plunge into the welcoming waters of the stock commercialiseplace to do so. This paper leave alone outline four principle benefits financial return, the security of diversification, and the sense of control over ones financial future. The sensation reason for investing in stocks flows from the likelihood of financial returns that are higher than one might pull together through some other investment strategy. Investing in the stock market offers one the luck to take the money that theyve earned and allow that money to work for them beyond the point of its acquisition. The stock market constitutes the most enduring system for assessing and contributing to the larger financial system, and provides one of the principle ways for sure consumers to earn a higher rate of return than would be possible through other investment or savings strategies. With an average return on ones investment of over 9% over 25 years (Observations 2009), the stock market makes even high fund money market accounts seem the excerpt of cowards or simpletons. Consider this particular case. A decade ago, a struggling computer manufacturer stood on the brink of bankruptcy, its stock price falling to historical lows. So real was the chance that the company would kris that its arch rival injected capital to keep them afloat, so worried was this rival about suits alleging monopoly control of the industry. The carry through companys stock price hit bottom at under fifteen dollars (Yahoo Finance 2001). Investors fled, but not all of them. Some committed themselves. Some bought in. These investors thought different. Today, that company, Apple, Inc., boasts a stock price of 570 dollars (Wall Street daybook 2012), the largest mark et capitalization of any company in history, and the more capital reserves than the U.S. federal government. For the investors that stuck with Apple, or who recognized opportunity in the collapse of their stock price and purchased new stock, the rewards have been substantial. Of course, one could overleap money instead of making it. As with any investment, the possibility exists that the return will be cast out and that the best laid investment plans will be more those of mice than of men, and that ones money will vanish on the next margin call. It would be a disservice to pretend as if this chance did not exist, on the dot because it is the chance of failure that makes the reward for success so substantial. Indeed, some might describe the stock market as a assay with your money, a sort of DOW and NASDAQ checkered roulette wheel. Dismissing stocks as a gamble would also be a disservice, for it misconstrues the structure of the stock market in order to stretch a metaphor to uncom fortable lengths. In a casino, for example, one gambles on games of chance, structured such that the house eternally wins. But here the house, if one is to follow the dictates of the metaphor, are the composite of the companies themselves, and if investment dollars flow in, then the ultimate likelihood of dividends flowing out increases in the aggregate. In addition, unlike games of chance, with stocks one can make an cognizant and researched opinion. The odds are not in the houses favor,