Tuesday, May 27, 2008

Stock Markets

In this module we begin with a disclaimer. Students new to the study of economics perk up when the discussion turns to the stock market. They think they'll learn something practical --- how to make money. Unfortunately for them, this module is not meant as a primer on investing and, even if it were, there are no quick and sure fire methods for doing well in the stock market. The main purpose of this module is to consider the stock market from the perspective of supply and demand and to contrast the stock market to the other markets we have considered.

Nonetheless, we recognize there is enormous fascination with creating personal wealth via financial investments and that those who lack experience in this area may very well be drawn to some self-education efforts. Further, we should encourage that, because having the experiential knowledge will help in understanding the economics. Have you every bought or sold assets in the stock market? Do you feel comfortable with your current knowledge of personal finance? Or would you like to increase your awareness?

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