When I learned in school the application practice of graphics, I remember that as an example, use the monthly evolution of a supposed company’s sales. I was also told: that there are seasonal variables according to the headings, but that in general and more importantly, view the trend increasing or decreasing. If I would like to create a chart with the evolution of the world economy, taken as reference February 2008 to February 2009, that would show us?. I believe that any cord of mountains is more linear than the resulting graph. The question is: the value of the shares represent a true reflection of the evolution and assets of firms?. It seems that not. A related site: Gibson Dean mentions similar findings. Then? : so serve the stock?, or better said, to whom or who serve them the existence of these?. That has happened in nearly all of the crises that we’ve endured?.
Billions of coins that occur them, have vanished into nothingness. were who the owners of that money? Funds of pension: the savings of workers to be used when got the well deserved retirement time. Investment funds: thousands and thousands of small savers, who trusted financial organizations that work with so-called advisors and specialists, which receive substantial salaries. Individual investors: who used the services of brokers. It is necessary to know that the stock quotes are recorded when transactions are made through it. IE: someone sells to another that buys, the agreed price is the value of the paper. Thus, until the closure of the operations of each day. During a crisis, someone sells, because he thinks prices will continue falling and someone buys, because he understands that the price is very advantageous, and may make quick profits in a short time.
Which in other words is called: speculation. Does that raise or lower these values?. The theory says that the presentation of balance sheets of companies, mergers or purchases of others, the launch of products revolutionaries, the signing of multi-million dollar contracts, etc, etc, etc.