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In the article, it proposes the main question: does a change in the comport commercialize predict the future of the economy? For example, if business line market plunges does the economy go along with it? Or if stock market rises, does the economy see improvements? These ar the questions that were asked in the article. In the end, it came to the conclusion that it does not predict the economys achievement or demise. The stock market though could also be beneficial in some ways, It could be detrimental to the economy, and finally could be used as an indicator
In simpler words, the stock market is a place where one could buy percentages of a company. Your wad in that investment lies on whether that company has good reach over the year. For example, lets enounce you buy a share from Apple for $10 and you invest in it. oer the course of the year, you might see an increase in the share meaning that instead of a share being $10; it could end up being $20. So what you do is convey that share, and you just made a profit of $10. But of course, in the real world we are talking about thousands and millions and billions of dollars worth(predicate) of shares. So obviously it has an impact on the economy. If people are buying shares and making huge profits, they will most probable spend more in the economy.



In the business standpoint, a company would buy more stocks and invest more if they ask more money. This keeps the economy growing.
On the other hand, lets have the same scenario as the last paragraph that this time instead of making profit, you lose. Lets say those $10 you invested on Apple have all of a sudden be worth just $5 at the end of the year; Meaning that Apple had no sales and no increase of income during the year. When you sell that share, you just lost $5. at present again, we are talking about thousands and millions of dollars in the real world, so imagine the negative impact it could have on the economy. In the article, it talks about stock market bubbles. This means that investors carry on the limit...If you want to get a full essay, order it on our website: Orderessay



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