CHAPTER 8
Stock Market—Bulls, Bears, and Pigs 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“I made a killing in the market bust of 2001. I shot my broker.”
Do I Need to Read This Chapter? • Am I interested in buying stocks, but hesitant to begin? • Exactly what happens when I buy or sell a stock? • What’s the difference between common and preferred stocks? • Have I weighed the advantages and disadvantages of stock ownership? • Can I buy stocks directly from a company without using a broker? ust prior to October 19, 1987, everyone was witnessing a major surge in the stock market. Money was being made everywhere, and the golden bubble of prosperity just grew and grew. Then came the inevitable burst in 1987, again in 1989, and again with the big bang of high-tech stocks in 2001–2002. It is said that bulls can make money and bears can make money, but pigs get slaughtered. And that is exactly what happened.
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There’s no doubt that investing in the stock market can be one of the most exciting ways of making money. Nothing quite compares with the thrill of seeing the little-known stock you picked become a hot property, perhaps doubling in price—and then doubling again and again. Microsoft, Google, and many of the other high-tech stocks are good examples. But as with any investment,
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