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Trust is important for people to invest in stocks. This posting illustrates the general relationship between trust and participation in the stock market.
The stock market involves much risk and uncertainty.
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It takes Trust to Invest
All they need to know is that they could stand to make some money if things fall right.
I think plunking money and hoping to get rich quick by choosing 'winners' in the stock market is almost the same as plunking it in Vegas --im not talking about people that get stable stocks and have a varied portfolio for retirement and such.
Surprised Greece is ranked lowest on the trust scale. I thought Greeks were famous for their hospitality and treating strangers like family (except FYROMians bc of the Macedonia naming dispute).
I agree what the article
I agree what the article says. Normally, people wouldn't invest on what they are not sure it is worth it. Stable market tends to be the place for people to invest.
People would not invest in a
People would not invest in a market if they were unsure of it. Yes, trusting in the market is important to a certain extent. But investing your future or alot of your earnings in something your unsure about, I would hope an individual understands the risks that come along with it.
Where there is risk, there
Where there is risk, there is an opportunity. I believe it's best to diversify investment portfolios and look for long term investments to minimize risk in what you say is un uncertain market.
The graph makes since, more
The graph makes since, more trust in the market, the more people will invest their money. Money is very important and valuable for people to put it in a place that is not trustworthy. I personally haven't gotten involve in the stock market, but before I do i would take a look at smart ways to invest and make sure I don't lose all my money. Once I'm more educated in the stock market, I will invest my money.
Individuals who invest in
Individuals who invest in the stock market need to understand the risk. The more risky usually the less costly, the less risky the stock usually the price is higher. A stable market seems to be where most individuals like to invest.
FIN325
Evan though you trust the stock market, but certain scales are still require in order to invest precisely.
So before you invest, make sure you understand the current situation of the market.
Finance 325 Response
I think that this article proves a valid point, it does take a lot of trust to invest in stocks. I would not know how to invest personally. I would need someone to fill me in on certain aspects so that I truly know what I am getting into with my money. I feel these days it is very hard to trust people in certain businesses. Many people are out there only for themselves and will do anything to succeed at their own fortune. There are many people who will take you for all your worth, so there is definitely a significant amount of trust that goes into the process. The question really is, who do we trust?
FIN325
I agree with what the author says about having to trust the market in order to invest. People are obviously not as eager to invest in the stock market right now during this recession. When the market is good again, people will be more trusting and want to invest more money in the market.
Fin 325
I am not a very trusting person and this article hit close to home for me. I don't feel like the stock market is investing, it is more like gambling. I would also treat it the same where I would only put in a smaller amount that wouldn't be missed and if it made any substantial gains I would want to pull out the added amount and keep playing the unmissed amount. Most people cannot do this though and either learn all the tricks or lose everything. In this economy no tricks are full proof and people are more likely to lose everything.
FIN 325
Trust is not only important for our human-being relationship but also important for investing of any kind. Risk and chance exist in the stock and they vary every second so it's not recommand to give all your trust to a stock because it maybe too risky to you as an investor.
The correlation between
The correlation between trust and participation in the stock market seems like it should be one of Geert Hofstede's cultural dimensions. It makes sense that there needs to be trust when investing in the stock market. Many peope don't understand the nuances of the stock market.
FIN325
The current recession definitely has scared people from investing in Wall Street. Three years ago I invested in vanguard mutual funds with a pretty balanced portfolio, as my first big investment. I ended up losing half of my initial investment two years later and was completely turned off of from investing in stocks and bonds. I am sure the same can be said for many people over the last few years.
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