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Q: Why did people like Richie think they could get rich by buying stocks?
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Continue Learning about Economics

Which of the following is one potential effect of an increase in the mortgage interest rates?

Some people could be priced out of buying a home.


What caused wall street?

People were shelling their stocks which meant there company was getting more money as some people needed money to pay back loans that they had borrowed but other stock holders started to panic and quickly put there stocks up for sale but people could afford it so they had to lower the prices. Banks went bankrupt as people didnt pay there loans back so banks had to close and people would lose there jobs.


What percent of the British receive dividends from British Petroleum?

I can't tell you. I can explain why this information is not available. The British Petroleum company pays dividends to people who own their stock. Computer systems keep track of who the owners are and their addresses on a particular date, as specified by the company. The computer system does not report the citizenship of their investors. I will explain why BP is owned by many people in many countries, not just Britain: The people who own the stock generally buy their shares from another person who wants to sell their stock. The buying and selling is done by a stock broker. The BP company is listed in New York and London. This makes it very easy for a brokerage company to buy and sell shares of BP stock. With the Internet, people from everywhere in the world can buy BP stock. Some people own it and will receive dividends, and they don't even know they have the stock. This is because they buy a mutual fund which contains many stocks, one of them could be BP. Each owner of a mutual fund will own a very small part of a large group of stocks and frequently they don't know all the stocks in the group. This makes it easy for investors in the US and other countries to own stocks in foreign countries.


How did having a surplus hurt industries in the 1920s?

Having a surplus of products was one of the main reasons that caused the Great Depression. Beginning in the 1920's, with Ford's invention of the assembly line, products began to be cheaper. Most could afford the products (which were marketed to the people for the first time in history, in which marketers tried to get people to buy things they did not need) and those who could not paid on credit. By the end of the 1920's, though, the objects being sold were things that lasted for a long time. People stopped buying and soon the industries were producing more than they sold, giving them a large profit/production cost in extreme misbalance. Stocks began to plummet due to this, and those who saw these profits plummeting ran to the banks, only to find the money they put in there was in turn put into the stocks and therefore was no longer there. The stock market than crashed and thousands of banks across the nation shut down, sparking the Great Depression.


What happen to supply when price goes up?

IN THEORY, the on-hand quantity of a product will increase when the price goes up, because people will buy less of it. In reality, price and supply aren't very well connected. The price could have gone up to discourage people from buying something there's a shortage of. Obviously the supply of such an item will go down because...well, we're out of it. Supply could also go up when price goes up because they're still making a lot of it but people aren't buying any for whatever reason. This has also happened: when the price goes up, supply goes down because people have started buying MORE of it. This happens with gasoline in the summer.

Related questions

Where could people buy and sell stocks in companies?

Where could people buy and sell stocks in companies?


What is the benefit of selling stock for a corporation?

The benifit is tlhat you could make more money off of people buying stocks for your corporation or you could loose money but that is not that often at all.


Where can one find tips on buying and selling stocks?

To find tips and tricks on buying and selling stocks, one should visit sites such as Bloomberg. Alternatively, one could try the official London Stock Exchange webpage, for example.


Buying on margin in the 1920s?

When investors could buy stocks for as little at 10% down-payment and then when the stock rose in price they could sell it and make a profit.


In the 1920's many American consumers began to adopt the practice of buying goods on credit?

buying on credit was the "item" that lead to the great depression. * people started buying luxury items * people borrowed money to invest in stocks * thought they could repay the loan when they sold their stocl or profit * b/c of so much buying; people were making ALOT of money * stores sold LOTS of goods; that made value of stock rise * at some pojnt; people could no longer buy things b/c they had spent all their money into paying off their credit * inflamation started; that lead && started the great depression


How might one buy stock in Starbucks Coffee Company?

To buy stocks in Starbucks Coffee Company one could try online through their bank or even through the Nasdaq site. One could also try buying Starbucks stocks through a stockbroker.


Where could people in the 1800s buy and sell stocks?

By adds, then they will mail them to the customer who bought it.


What are the pros and cons of buying bank stocks?

In the current market Bank stocks at companies such as Morgan Stanley, Bank of America, JP Morgan and Wells Fargo are all trading at historically low prices. When these stock prices normalize an investment at these low prices can equal big profits. The cons to this would be the same as any stock--namely the uncertainty is a con. However, bank stock prices will rise so buying stocks in of of the aforementioned banks could equal large returns in the future.


Where can you find some guidelines for trading stocks?

A professional investment adviser could help answer your questions on trading stocks. Alternatively, taking a class or short course could help you understand the guidelines of trading stocks.


How families were affected by the great depression?

they had most likely had debt built up from buying auto mobiles and other expensive items. they also could have lost there jobs or owned lots of stocks which became worthless.


How do you take action against a newspaper?

You could stop buying it, and get other people to stop too.


Why the federal reserve system was unable to hold off the great depression?

Basically they refused to take any action. Why should they when previous depressions had been solved by wealthy people like J. P. Morgan buying lots of newly cheap stocks just before they could lose all their value.