The New York Stock Exchange is the world's largest stock exchange. It is a collection of foreign and domestic securities, and organizes securities markets into one location, thus helping direct money from investors into various areas or the market. Unlike other exchanges, trades within the NYSE occur in a physical place, known as an auction market.
The DJIA is a stock market index, and usually monitors the top 30 NYSE stocks. By doing so, the DJIA helps indicate the performance of the American economy's industrial sector and is therefore closely monitored.
NASDAQ , unlike the NYSE, is a dealer's market, located on a telecommunications network. It both facilitates the trade of stocks and provides quotes for stock prices. Generally, NASDAQ is recognized as a high-tech market attracting, almost exclusively, firms dealing in electronics or the internet. Due to its relationship with the tech sector, NASDAQ is accordingly volatile.
While there are critics of all three institutions, I believe that, on balance, the NYSE, DJIA AND NASDAQ play a positive role in our economy. By helping keep investors informed and channeling money from investors into difference areas of the market respectively, they help fuel economic growth.
Thursday, March 15, 2012
Monday, March 5, 2012
Argentina's Inflation Fabrication
Source used: http://www.economist.com/node/21548242
Although Argentina suffers from mounting inflation and has for years, few know the exact inflation rate. Since 2007, the Argentinian government has released false inflation rates of around 5% to 11%. Independent estimates for the actual inflation rate vary between 25% to 35%. At the same time the government denies inflation as a problem, they increase the money supply, why only exacerbates inflation by weakening buying-power. In an attempt to strengthen the economy, Argentina's deception only perpetuates economic strife. Not only do they further weaken their currency by printing more money, but the government's lies anger constituents and slows growth by making investors wary to invest in the Argentinian economy.
Although Argentina suffers from mounting inflation and has for years, few know the exact inflation rate. Since 2007, the Argentinian government has released false inflation rates of around 5% to 11%. Independent estimates for the actual inflation rate vary between 25% to 35%. At the same time the government denies inflation as a problem, they increase the money supply, why only exacerbates inflation by weakening buying-power. In an attempt to strengthen the economy, Argentina's deception only perpetuates economic strife. Not only do they further weaken their currency by printing more money, but the government's lies anger constituents and slows growth by making investors wary to invest in the Argentinian economy.
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