Dow Down 416 Pts!- Why

The reason Dow went down is probably because people started selling stocks rapidly, and the Asians companies weren't doing so well in producing their goods. Asians depoend on the U.S. on buying the goods they create, specialy China. This is just like what happened before the great depression. I think if the rate of Dow keeps going down then we might have another depression, but i highly doubt that. When i first saw my stocks going down i sold some of them, But now i seen that when the stock market goes down you get a chance to buy expensive stock for cheaper, but its a big risk, because you dont know for a fact if its going to keep going down or if it is going to go up and make you money.

Opportunity Costs

when economists talk about oppurtunity cost they mean that you have some money that you need, and you can use the money, but if you do use the money you are taking a risk because if you lose the money you end up having nothing at all. Oppurtunity cost is kind of goes like the prhase "to earn something you have to lose something". You don't neccesserly get something back, thats why it is called a opportunity cost, you are taking a risk to achieve your goal, a goal that can give you more money then you spent and don't have to worry about financial problem for the rest of you life. For Example if you take a loan from the bank, you can use that money to invest something somwhere so you money can grow, or if you own a house you can sell that house and make profit and out of that profit you can use that money to go to college and if you have enough money left you can buy another house. The last example kind of connects to me, because when im turning 18 i am going to get one of my parents house under my name, so if i dont have enough money to go to college then i would think of selling the house and using the money to go to college.

Types Of Economic Systems

Traditional Econmic System is kind of like a private stock where only the family members can buy,sell, or trade stocks. This kind of stocks are mostly found in Asia, South Amarica, and Africa. Its mostly people with farms.
Centrally Planned (Command) Economy is mostly in a communist country, Where people cant buy or sell stocks on their own, the government has the power to buy and sell stocks. People cant start a small buisness and start selling stocks. Everything has to be decided by the Government.
Market Economy is most likely to be in a Deomocracy government. Where you get to decide what you want to do with your money and how you want to spend it or use it. In a Market Economy you take the risk of your money and you do what you think is the best way to make money out of the money you have.
Mixed Economy is where people have private stocks public stocks and a command Economy. Almost every country nowdays have mixed economy.
The difference between Communism and Socialism is that in a Socialist society the consumers get to make the decision for their stocks, and in a Communist society the Government gets to decide what to do with the stocks even if you own it. In a communist society you can have both Public and Private ownership of the market, and in a Socialist society you can have only private ownership of the market.

Stock Market Game-1- Initial Investment Stratagy

I decided to invest on Bank of America , because i am interested in banks and buisnesses and i saw that this company does good every year and its stocks prices increases. I also chose to invest on the company Taiwan Semicond, because its a small company and from the graph i assume it will do good like it did before.

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