Chapter 2

Chapter 2: How the Stock Market Works and Why It Moves

  • In June 2009, the average number of transactions that occurred on the U.S stock exchanges was 40 million PER DAY!
  • This represented a staggering 9.5 BILLION shares that traded hands PER DAY!
  • The total value of all of the public traded stocks in the world is about $40 TRILLION.
Are you part of these numbers? Are you part of the 50% of Americans that own equities either directly in the brokerage accounts or through mutual funds in their retirement accounts? If you are part of this half, then congratulations for participating in the greatest wealth building opportunity that exists today. If you are not part of these numbers, then keep reading and we will educate you and give you the confidence to become a successful investor.

2-01 What Are Stock Exchanges?

2-02 A History Lesson – Wall Street

2-03 Other Stock Exchanges

2-04 Public versus Private Companies & IPOs versus Secondary Market Securities

2-05 Market Timing and Moving

2-06 Bull vs. Bear Markets

2-07 The Danger of Trying to Time the Market

2-08 Brokers and How to Choose the Right Ones

2-09 Why Stocks Are a Good Choice to Earn High Returns

2-10 Buying Individual Stocks Versus Investing in Mutual Funds

2-11 Resources

2-12 Chapter 2 Exam