Summary of Michele Cagan's Stock Market 101

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 The stock market is a place where fortunes are made and lost. It can turn suddenly and destroy everything, crushing dreams in the process.

#2 The stock market is a place where fortunes are made and lost. It can turn suddenly and crush dreams in the process.

#3 The stock market is a place where fortunes are made and lost. It can turn suddenly and destroy everything, crushing dreams in the process.

#4 The primary market is where the stock is bought from the company, and the secondary market is where it’s sold to another investor. -> The stock market is a place where fortunes are made and lost. It can turn suddenly and destroy everything, crushing dreams in the process.

• Language: English
• Publisher: IRB Media
• Release date: Sep 15, 2022
• ISBN: 9798350029024

IRB Media

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Insights from Chapter 1

#1

The stock market is where fortunes are won and lost. The action is nearly silent today, a stark contrast to the Wild West excitement of ten years ago.

#2

When the United States was in its infancy, the founding fathers worked tirelessly to create a nation like no other. In a brilliant move, President George Washington installed Alexander Hamilton as the first Secretary of the Treasury in 1789.

#3

The U. S. stock market is made up of the New York Stock Exchange and the National Association of Securities Dealers Automated Quotations. Other cities like Boston, Chicago, Philadelphia, Denver, San Francisco, and Los Angeles have exchanges, as do many major international cities like London and Tokyo.

#4

The main difference between the secondary market, where investors buy and sell stock, and the primary market, where large investors buy stock directly from the issuing company, is the players involved.

#5

When a privately owned company wants to raise a lot of money, its owners may turn to an investment banker. Investment bankers help companies convert privately owned businesses into publicly traded companies.

#6

The best long-term returns are achieved through stocks. However, they are not the only reason that owning stocks makes sense. With literally thousands of publicly traded companies trading in the United States alone, there is a wide variety of stocks to choose from.

#7

The stock market tends to follow a predictable pattern after an election year. The first year of a first term brings market volatility as the new administration settles in. The second year brings mild overall gains, followed by stronger returns in the third year.

#8

The impact of a corporate scandal can be felt for years, especially if the news coverage is extensive. Some corporations are permanently damaged or destroyed by scandal, while others rise above the fray and thrive.

#9

The Volkswagen emissions test scandal of 2015, which affected more than 10 million cars worldwide, led CEO Martin Winterkorn to step down as the corporation’s stock price lost ground.