FIN 2984 Lecture 9: Class 9
5 Oct 2016
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Document Summary
Capital appreciation is main reason to own stocks. Price of a stock based on growth prospects of company. Information comes out (earnings, new business, new products) and investors buy/sell base. Stocks grew 202 % since low in 2009. China and emc"s + canada/australia supplying to china. Capital outflows from emerging market countries to developed countries. Oil decline in prices (from over to ) A lot of us growth in energy producing states. U. s. stocks represent an ownership share in u. s. based corporations. red in. U. s. stocks represent an ownership share in u. s. based corporations. The u. s. has the largest economy and stock market in the world (innovation engine). Foreign developed market stocks represent an ownership share in companies headquartered in. Foreign developed markets represent a significant part of the world economy. Emerging market stocks represent an ownership share in foreign companies in developing econ. Younger demographics, expanding middle classes and faster economic growth.
