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Stock Market

Ever wondered how stock markets work?

Well let me say that no one can actually tell!! Experience, corporate knowledge, reliable economic data..etc, can help, but nothing is predictable!!

It was funny when I heard in our Corporate Finance class that the graphs from a stock market performance over time, looks hardly different from a coin flip a few times. Basically it is quite random...why?? no one knows!!

It has mostly to do with investor behaviors. Many many things have influence on the average typical investor. Other than big shot corporate like mutual fund institutions, average investors count for more than half of the stock investments in USA. That is a very very rough estimate. But it does indicate that the market is influenced by the public reaction to such fluctuations such as interest rate, unemployment rates, or even oil price.

For those who would like to start practicing their investment skills, CBS Marketwatch has an excellent tool to do so. You get a million dollar credit to practice your skills with real time data!

I used to play a lot, however my portfolio was lost when the previous owner sold the system to CBS. As soon as I am done with my finals in late December, I will get on it again!

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