Finance: Stock Going Up

Dow Jones goes up and down. Each day is different. We get confused by numbers posted at the bottom corner on CNN. The Dow Jones Industrial Average may rise 100 points one day and plummet 100 points the next. Cleaning out your savings. So then your credit’s gone and the bank can’t help you. You’re left with nothing. It’s a yo-yo business. It doesn’t always come back to you.

Actually the Dow Jones Industrial Average isn’t the only ticket in Wall Street.

Every evening with the Dow Jones numbers you’ll see a couple of other heavy hitters too. If there was one market to talk about it’d be the Dow Jones.

In the late 1800’s when Wall Street first started people didn’t understand what the loads of jumbled numbers meant because no one explained it to them. With out a teacher you’re not going to learn. It’s not naturally in your head. Someone’s got to put it there. The points didn’t explain what stocks to invest in. They didn’t get into specifics. Dow Jones tried to make the market make more since by erasing a bulk of the clutter of numbers. Trains and soda were the top trades in those days. Things that make you go. Today the Dow Jones owns dozens of companies so if one does bad the others will save it.

Historically there have been rainy days and sunny days for the Dow Jones. During the great depression sort of like what we were experiencing now people went a little nuts. There were explosions and deaths. Most of them caused on purpose. After getting tired of sweeping chimney tops before they knew it the war was over. Times were changing and stock was up. Their percentages make their customers $1 every time their stock goes up 10%.

Blue Chip companies have small safe shares. You won’t loose much money. Their percentages vary depending on what you sell and keep for yourself. The more sales the more value your stock is for the time being. So value the companies that you actually use or things you have heard of like ford and gold. Their stock’s up.

Sometimes a company lets you have some of what their getting. As a bonus for you staying with them for a while and not being a traitor. They’re called dividends you’ll want to remember that. Don’t get too excited were talking pennies cents fractions of a dollar but that adds up over time especially if the company’s worth a billion. If a group of people invested in one share that made ten times its value then they make a profit of actual dollars but it’s kind of hard for ten people with very different opinions and very different views to agree with a single stock.

Many people waste time doing research on companies whose values are growing. That doesn’t necessarily mean they’re going to make a profit which is the goal of the game. Just because you invested in stock that’s up doesn’t mean it’s going to stay that way. In that logic you might as well invest in stock that’s doing bad and see your stock the next time boosted on CNN.