Why Are Stocks Dropping
why is Wall street so important?
Shouldnt the companies themselves be the ones that are important instead of stock traders who own shares of those companies? Its the companies that make the real benefit and not the stock traders.
Am I missing something?
i am giving an example:
say because of this financial crisis most of the stock prices drop, like AAPL, but heck! what is its affect to the actual Apple company’s work and income? I assume nothing, its just some stock holders that lose money, the company itself still makes as much benefit as before.
What is this whole game? I dont get it.
Well I know that there is this banking and credit crisis, for the banks crisis I get it, but how about the other company’s stock? Why it keeps dropping?
Too many questions in my brain!!!
The market capitalization of MSFT, for example, is $240 billion. A sharp decline of 30% (fairly standard bear market declines, I think the S&P is down 25-30% (as of a few days ago, I do forex mainly) is a stockholder loss of 72 billion dollars, just in MSFT. What if there were thousands of stocks? A collapse means the losses of trillions and trillions of dollars in public money. Most people don’t realize how much rides on the market.
Stocks drop for a variety of reasons, and nearly all stocks are tied together in one way or another. Have you read the investopedia tutorials yet?
Stocks Drop Nearly 700 on Recession Confirmation