Reading Reaction Journal #2

Reference

Hartman, Holly (2009, Feb. 3). What is the stock market?
Fact Monster Datebase.Retrieved on Feb. 3, 2009, from http://factmonster.com/spot/stockmarket.html


Summary

In the article, "What is the stock market?" the author explains why stock is made and needed. In addition, it explains how stock influences stockholders and the company. It explains what we would realize if we buy shares, and what we should do if we hold stocks. What the author wanted to point out is general things that are related to stocks basically.


Reaction

I was always interesred in the stockmarket, but it is difficult to understand the words in relation to stock. So, I often thought that someone should have written about the worlds of stock easily. That's why I selected this article. The author says that if a company intends to grow, it must issue the stock for money. This is absolutely true. But we also know that not every corporation can issue stock. At any rate, a company is invested in by investors with stocks, and shareholders have a dream that is earning money. Besides, the author explains that the more stock we have, the more rights we have in the company. It is not true, but not wrong either, since many companies can restrict the rights of share-holders. It is possible to do that. For the reason of mersing and acquisition, the law permits protection of the company. Usually, stock is exchanged in the stockmarket. Nevertheless, there are many stocks that couldn't be exchanged in any place. What it comes down to is that this article gives us a brief contents that are needed in the stockmarket.