Market Myths Essay Example | Topics and Well Written Essays - 4500 words

Market Myths - Essay Example Myth Number One is that some people equate investing in the stock market to gambling with their money. As a result of this fallacy, a significant number of individuals avoid the stock market. An understanding of the reasoning behind purchasing stocks needs to be well-known in order for an individual to understand how investing in them is different from gambling. It is important to remember that a share of stock represents partial ownership in a company, and it gives the person who owns the stock some of the profits that the company makes and allows that individual to share assets (Investopedia, 2008, pg. 1). "Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents the ownership of a company. In the stock market, investors are constantly trying to assess the profit that will be left over for shareholders. This is why stock prices fluctuate. The outlook for business conditions is always changing, and so are the future earnings of a company" (Investopedia, 2008, pg. 1). It is a rather daunting task to determine the value of a company at any given point. The Random Walk Theory applies, and this theory states that "there are so many variables involved that the short-term price movements appear to be random (Investopedia, 2008, pg. 1). ... 1) Also according to the article by Investopedia (2008, pg. 2), "Gambling, on the contrary, is a zero-sum game. It merely takes money from a loser and gives it to a winner. No value is ever created. By investing, we increase the overall wealth of an economy. As companies compete, they increase productivity and develop products thatcan make our lives better. Don't confuse investing and creating wealth with gambling's zero-sum game." Myth Number Two is that the stock market is some type of fancy, executive club reserved for the wealthy and for brokers and that the average person cannot play, or at least cannot play very well. The fact is that brokers do not hold all of the secrets anymore. Thanks to advances in technology and the advent of the Internet, all of the forecasting a research tools that brokers use are available to the general public as well, and they are really easy to get at pretty much any retail store that sells books and electronics (Investopedia, 2008). "Actually, individuals have an advantage over institutional investors becauseindividuals can afford to be long-term oriented. The big money managers are under extreme pressure to get high returns every quarter. Their performance is often so scrutinized that they can't invest in opportunities that take some time to develop. Individuals have the ability to look beyond temporary downturns in favor of a long-term outlook" (Investopedia, 2008, pg. 3). The third market myth is that stocks that have risen high and fallen will rise again. This is not necessarily true. Investopedia (2008, pg. 3) offers the following example: "Suppose you are looking at two stocks: XYZ made an all time high last year around $50 but

Labor Essay Example | Topics and Well Written Essays - 250 words - 2

Labor - Essay Example While the responsibility for providing a safe work environment falls onto the employer and its Human Resources management team, it is the responsibility of the employee to comply with the rules that are required to ensure a safe working environment. In this brief outline, the phenomenon of Labor Unions will be critically analyzed and explored, discussing the purpose of a union, experience with unions from a Human Resource perspective, Good Faith, and a number of associated terms that bring clarity to the whole labor union movement. Since before the 1950’s, United States employees have been fighting for equity, fairness, and to be treated with dignity and respect. It is through the labor union movement that the AFL-CIO was able to form and demand fair practices and acceptable working conditions on job sites all across America. The reasons why many workers from various industries came to join a union, and continue to do so to this day, is to ensure that their rights are preserved and that their health and safety are protected. In many cases, currently and historically, there are unfair practices going on around the world. American union members are now encouraging laborers in other countries to organize unions in order to do the same thing. Dressler states that as many as 14.7 million U.S. workers belong to unions, about 11.9% of the total (Dressler, 2013, p. 496) (Dessler, Human Resource Management, 13th Edition). The views of this outline concerning labor unions have more to do with the theoretical discourse that is ascertained through reading both historical and current events. Its perspective is also influenced by images in the news media of labor union strikes displaying angry blue collar workers and picketers marching and shouting in front of their place of employment, or at least the corporate office. It has much less to do with the limited knowledge and experience on a professional level. With that caveat being