Pros And Cons Of The Stock Market

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The stock market is a dangerous and risky business, but it can also be put to good use. Stocks to most people are just something an individual will invest in as an extra form of income. However, some people make a living on just investing and putting all of their time in the stock market. The people who make tons of money in the stock market are extremely strategic and smart with how they go about this process. Business’ can benefit from the investments that go on in this market also. The stock market can affect businesses and individual people through taxes, income, or money loss. When it comes time for a person to pay his or her taxes, it can be a little more complicated than usual if he or she has invested in a business. Miriam Caldwell said, “While most people are aware of the taxes related to selling stocks, they may not be aware of…show more content…
“The government always wants to inflate the currency so companies have to charge more for their product” said Beattie (Andrew Beattie). The government also use interest rates to affect the stock market. Andrew Beattie also said, “Dropping interest rates as opposed to raising them encourage companies and individuals to borrow and buy more”(Andrew Beattie). This being done can lead to an outrageous amount of an individual's capital being terminated. This act that comes along and terminates capital is called a asset bubble. The stock Market has been an extreme impact in society today, and for a long time. It has helped many individuals and lots of businesses make more money. As was stated at the beginning of this paper it is a risky and dangerous business, but if it is put to good use you can make a great amount of money. Businesses and individuals need to know exactly what they are getting in too when messing with this market. The companies and investors need to know about the result of taxes, all the basics, how it will affect a business, and how the government can have pull on this
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