How the Stock Market Works

1924 words 8 pages
The stock market is where companies are able to sell stocks/shares or derivatives on any agreeable price. There are many stock markets around the world that operate in different countries, and the biggest two are in New York City, U.S.A, which are the NYSE Euronext and NASDAQ. So in this course we were requested to participate in a stock exchange simulation, in which we are to exchange stocks virtually based on real statistics. In this game we were to experiment with buying and selling stocks and try out different strategies, and determine which strategy generated the most profits. The main goal was to start out with $10,000 of virtual money and buy and sell stocks in order to make more profit and increase the final amount. The first …show more content…

In addition I bought stocks in SteelCloud Inc. which is a company that produces appliances that help make technological mobility more efficient and secure. And since SteelCloud Inc. has relations with Blackberry which released new cell phones, it should ultimately contribute to SteelCloud Inc. profit margin. Level 3 Communications was the last company I purchased stocks from. This is a company that focuses on delivering internet connection and phone networks into businesses, and has recently declared to expand in Canada, which should help increase their profit. All of these companies don’t have much in common, except the value of their stock which is below the $5 value, making them all Penny Stocks. Penny stocks are stocks that are bought and sold for a really low value; however these are also known as high-risk stocks. This strategy helps you gain or lose capital in a short period of time, because the price of these stocks can go up and down unexpectedly at a fast pace. Through the stocks I bought and using this strategy I was able to increase my profit and make up for the money that was lost using the old strategy. And this is a really good strategy, especially taking in consideration the scenario that class is in, which is to create a profit through the exchange of stocks in four weeks. In the third week I bought stocks from


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