Opinions Regarding Online Investing on the US Stock Market

Alexandru Cristian Dobre ()
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Alexandru Cristian Dobre: “Lucian Blaga” University of Sibiu, Romania

Annals of the University of Petrosani, Economics, 2017, vol. 17, issue 2, 25-30

Abstract: The operation of the stock market can be a great source of confusion for many people. Some people think investing is a form of gambling and they feel that if they invest, they will probably lose money more than win. These fears may result from the personal experiences of family members and friends who have suffered similar events or lived through the Great Depression. These feelings are usually not based on facts. Someone who believes along this line of thinking probably does not have a thorough understanding of the stock market and why it exists. Other people think they should invest in the long run, but do not know where to start. Before they know how the currency market works, they look at an investment as a kind of black magic that only a few people know how to use it. Most of the time, they leave financial decisions on the hands of professionals, and they cannot tell why they have a particular action or a mutual fund. After learning a few techniques, the average investor can evaluate a company's balance sheet and, after some relatively simple calculations, arrives at its own interpretation of the actual or intrinsic value of a company and its shares. This allows an investor to look at the shares and to know it deserves, for example, $ 30 per share. This gives each investor the freedom to determine when the market has a stock, substantially increasing long-term returns, or overestimating a stock, making it a poor choice for investment.

Keywords: investments; strategies; market; capital (search for similar items in EconPapers)
JEL-codes: G10 G23 (search for similar items in EconPapers)
Date: 2017
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