Dow Down 416 pts.-Why?

After steady declines in all markets, panic seemed to hit the American market just before 3 p.m., perhaps caused by sell programs that went off at 2:52 p.m.There were some technological problems yesterday. Dow Jones, which calculates the Dow industrials, said its system fell behind shortly before 3 p.m., and that a big fall was shown when the backup system came on.I won’t do anything with my stocks because eventually it will go up sooner or later. I will just leave my stocks alone if I lose money than I lose. Because sooner or later it has to recover.I think it will be a great chance to buy stocks because you could buy it for a cheaper price and instead of buying one you could buy two. Like I said the stocks would eventually go up.The decline that occurred on Tuesday everyone panicked because the last time that occurred was when the 9/11 attacks occurred. And when the great depression occurred because the stock market went very low.

Opportunity Costs

Opportunity Cost is when you give up something to get something else. Opportunity cost is the cost we pay when we give up something to get something else. There can be many alternatives that we give up to get something else, but the opportunity cost of a decision is the most desirable alternative we give up to get what we want.One example that I can use to describe opportunity costs is that I had to stop playing soccer to focus in school and get better grades.Another example I can use is that to earn money I had to stay baby sitting my cousin instead og going to the movies with my friends.

Types of Economic Systems

Traditional economies: are in which people do their own thing that they survive on what they make. For example if you plant vegetables and you eat that. Traditional economy is the same as your past for example your grandparents. You still could find traditional economies in South America, Asia, and Africa. Basically traditional economies are passed down by tradition and they chose to live that way.
Centrally Planned (Command) Economy: The centrally planned economy is basically run by the government and the government decides everything on what to do. No other person could make a decision to run any kind of business. The government decides what goods they could sell and produce. And the government sell the goods and the services.
Market Economy: The U.S. runs on the market economy. A market economic system is one in which a nation's economic decisions are the result of individual decisions by buyers and sellers in the marketplace. An economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority; a capitalistic economy. Market economy depends on you because you could open a business and if the consumers look for your product you have a chance to succeed if the consumer doesn’t like your product you will run out of business.
Mixed Economy: A mixed economy is when a country has communism and socialism. No countries have only one because every country has a mixed economy, with some free enterprise and some government ownership.
Communism: is when the government operates and controls all of the nations productions. Communism is a system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.
Socialism: is when the government owns everything from banks to airplane companies. And everyone contributes to the economy. If the government owns and operates many of the nation's major industries-such as banks, airlines, railroads, and power plants-but allows individuals to own other businesses, including stores, farms, and factories, that nation's economic system is called socialism.

Stock Market Game - 1 - Initial Investment Strategy

I’m planing to buy many stocks but it has to be cheap but the percentage has to be pretty high. No I’m not planing to buy a mutual fund because you have to re buy the stock and you waste money. I’m planing to buy stocks that deals with energy, light, and food because that a everyday thing and you need that. Or I was planing to buy a gasoline stocks because you need gas to run cars and many other things. I am not planing to but a penny stock because you don’t win that much money on that and there is a greater chance you will lose everything. My strategies is to research all the companies and to see how much it raises per week. And the cost of the stocks it has to be kind of cheap so I could buy more stocks.