Through playing the stock market game, I learned to never play the real game. I would not play the game because the direction the stock market goes …show more content…
The first stock exchange was Sans the Stock. This was in 1531 in Belgium. They did this by meeting up in person, and stocks were not the things traded but rather bonds and promissory notes. Ship owners practiced stock exchange to lessen the amount of money they would lose if a ship carrying their goods was lost. They looked for investors, and promised to give them some of their proceeds if the travel went well. When East Indies companies were created, they paid percentages of their proceeds by all the voyages they made instead of doing the voyage by voyage system. The shares sold were given on paper. These paper could also be sold to other investors. There were also brokers at the time. Business usually happened in coffee shops in London in England. A coffee shop where stock traders met up was taken over by the stock traders, and it became the London Stock Exchange. To get potential investors’ attention, people posted up shares for sale notices on shop doors or mail them. If the company was big, investors would get a lot of money. The British East India Company was a monopoly backed by the government, making them having one of the best advantages in financial history. Investors got fortunes off their shares. The SSC was a similar company who got a charter from the king. Before its first ship even left, SSC had already made a lot of money from its investors. Inspired by these …show more content…
GDP is measured every year. It is an important number for an economy to keep track of because it shows how healthy a country’s economy is. If GDP number rises, the economy has become better. If GDP decreases, that shows that the economy is doing worse. There would be more unemployment because there is less demand for products. It is important that the real GDP keeps increasing because the people would benefit by raised incomes. Also, businesses would have the money to hire more employees. The government wouldn’t need to borrow as much from other countries. The government would also have more money, so they can spend that money on education and other services for the people. The components of GDP is the total spending of the people on goods and services, and the total income producers make from these goods and services. Activities include in GDP are government spending, investments, consumption, and net exports. Government spending does not include transfer payments. One example of transfer payments are social security. Investments include companies buying tools and any construction. Consumption is when households buy goods or services. Net exports is exports minus imports. Things excluded are stocks, bonds, allowances for kids, or building stuff in your own home. Allowances for kids and building stuff in your home is not included because these things do happen in the market. Stocks and bonds are