World Report: November 1, 2002 Vol.8 No.7
- This Issue:
- Table of Contents
- Cover Story
- Cover Story - Spanish Version
- Mini-Lesson
- Comprehension Quiz
- Teacher's Guide and Worksheets
The Stock Market
Who owns companies like Disney, McDonald's and Wal-Mart? Ordinary people do. For about $19, you can buy one piece, or share, of stock in McDonald's. People buy stock in companies in hopes that they can make money by selling it later for a higher price. A stock's price depends on how many people want to buy it. If the demand for a stock is strong (perhaps because the company has a hot new product), then the price goes up. If nobody wants to buy it, the price drops. Shares of companies are bought and sold in a marketplace called the stock market.
About half of Americans own stock. Most lost money in the last two years, as stock prices fell. But like the economy, the stock market goes through cycles. When stock prices start heading up again, as they did last week, it's usually a sign of an improving economy.
