Dow Jones And The Stock Market Crash Of 2008

On January 17, 2018, the Dow Jones Industrial Average (DJIA) breached the 26,000 point mark for the first time in history. The Dow Jones is an index that averages 26 major stocks and summarizes the overall growth day to day. Just ten years ago in 2008, the Dow Jones was at a depressing 6,443. That figure was after one of the worst crisis’ in history of the stock market. From late 2007 to early 2008, the world saw the Dow Jones fall over 50 percent. This was due to many reasons including failing mortgages, toxic debt, and government bank bailouts. The Market Crash of 2008 left many people in immediate despair although improvements in future investing has led to positive changes. Many people have been both positively and negatively affected by

The American Stock Exchange is believed to be started in 1921 but was not officially founded until 1953. Another large exchange, NASDAQ, was found in 1971 These two stock exchanges have provided businesses and citizens alike many advantages in the world of businesses. These stock exchanges provide capital for businesses so that they can use the public's money to make improvements to their company. An initial public offering, IPO, is when a business first goes public. A company works with a bank to determine how much capital it needs, how many stocks to sell, and at what price. Money can be paid back to stock owners through dividends, selling the shares, or stock buybacks. Dividends are periodic payouts with the money based on how many shares each shareholders owns. Selling the stocks brings money in because whatever someone is willing to pay for it is how much you can sell it for, these prices although are maintained through stock exchanges and stockbrokers. Stock buybacks occur when a company wants to buy their shares back and offer money to stockholders. With many stocks, fund, and indexes, the stock market can be very difficult to understand and manage. There are many ways that a regular joe can benefit from the market without having to know every minute detail. Edward Jones, for example, is an Investment Company that provides advice and service through financial

He worked with a few investment companies before naming himself chairman of Berkshire Hathaway, then a textile company, now a prominent conglomerate, after he acquired more than half of the company’s stock. He then used profits of Berkshire Hathaway from insurance and banking to turn the company into a powerhouse by purchasing and attaining stock in many companies from candy to GEICO insurance. Warren Buffett is now one of the richest men in the world and Berkshire Hathaway, his company, is a major player in the world of business. Although everyone is not promised to have the success that Buffett had, an average person should still be more that motivated to invest in the stock market. James Hirby explains that someone who makes a median income and invests 10% of it, uses smart investment strategies, and starts investing around age 25 can easily save a million dollars throughout their career before retirement. These are a few examples of how the stock market affects many people in the country. The stock market can provide capital growth for companies, major profit for smart and risky investors, and college funds, retirement plans, or extra savings for the everyday