A seat on the stock exchange allows the firm that owns it to trade--buy and sell-stock on the floor of the New York Stock Exchange--the NYSE. The firm buys the seat when one becomes available because someone is selling it. A seat on the exchange may cost millions--whatever the seller can get for it.
The New York Stock Exchange is a famous building on Wall Street in New York. It's the "real" part of the movie Wall Street.
Showing posts with label Wall Street. Show all posts
Showing posts with label Wall Street. Show all posts
Tuesday, May 29, 2012
Monday, November 7, 2011
Wall Street
Wall Street is the site of the New York Stock Exchange ( NYSE ). This is one of the busiest places where stocks and bonds are bought and sold. It is also one of the most famous. One of the reasons that stock is sold is to raise money to start a business. Investors can buy "stock" in the business--they own a "share" of the business, as long as they own the stock. When they sell the stock, they have sold their "share" in the business. They may sell the stock or "share" for more than they paid for it, and make a profit. If they sell the stock or "share" for less than they paid for it, they have lost money on that investment.
One of the things that can go wrong with the buying and selling of stock is too much speculation. Speculation is like gambling--the only reason people are involved is to make a quick profit, instead of investing for retirement, or hoping for gains when they sell the stock years later. Any person, or group of persons, with a large sum of money to invest can make a profit on the small daily fluctuations in the price of stock--if they invest enough. If a stock's price goes up only ten cents a share, that may mean a large profit to someone with ten million dollars worth of stock to sell--stock they might have bought earlier the same day. Too much of this behavior, and too much profit from it, alters business for the worse. Stock prices, and profits from stock deals, become more important than profits from doing business. The "shares"of stock were part ownership of a business --a business that now worries more about stock prices than about making better products or employing more people.
A stock exchange is an invention. It is one way to start a business with little or no capital ( money, or the capacity to get it ). A stock exchange was not meant to be a casino, although many people use it that way.
One of the things that can go wrong with the buying and selling of stock is too much speculation. Speculation is like gambling--the only reason people are involved is to make a quick profit, instead of investing for retirement, or hoping for gains when they sell the stock years later. Any person, or group of persons, with a large sum of money to invest can make a profit on the small daily fluctuations in the price of stock--if they invest enough. If a stock's price goes up only ten cents a share, that may mean a large profit to someone with ten million dollars worth of stock to sell--stock they might have bought earlier the same day. Too much of this behavior, and too much profit from it, alters business for the worse. Stock prices, and profits from stock deals, become more important than profits from doing business. The "shares"of stock were part ownership of a business --a business that now worries more about stock prices than about making better products or employing more people.
A stock exchange is an invention. It is one way to start a business with little or no capital ( money, or the capacity to get it ). A stock exchange was not meant to be a casino, although many people use it that way.
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