Losing on the stock market

Article Abstract:

There is a debate as to whether stock markets help or hinder economic growth. Some economists argue that they promote a short-term approach to investment, distort investment allocation and can fuel excessive consumption during speculative bubbles, or trigger recessions when stock prices fall, Others argue that they increase savings rates and capital available for investment and encourage efficiency because takeovers become possible. Believers in efficient markets are likely to see stock markets as efficient, while investors hoping to gain from inefficient markets should recognise problems they can cause.

Analysis, Economic development

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In defence of stock market volatility

Article Abstract:

Stock prices can be volatile and some analysts argue that this volatility is excessive. This is not easy to prove, since it is difficult to assess certainty about future earnings and dividends. Companies tend to smooth dividends, so they will be less volatile than stock prices. Volatile stock prices do not have a major impact on consumption and capital spending since there is a good chance that price movements in one directions may be reversed. It is not clear that stock price volatility is irrational, or that it damages the economy.

Dividends

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Stock crazy

Article Abstract:

The usage of traded options for British stocks at a time of difficult markets is examined in detail.

United Kingdom, Usage, Options (Finance)

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