Interactive chart of the Dow Jones Industrial Common inventory market index for the last one hundred years. The British East India Company had one of the greatest competitive advantages in monetary history – a authorities-backed monopoly When the traders started to receive large dividends and promote their shares for fortunes, other buyers had been hungry for a chunk of the action.
When professional investors began pulling out their cash, it was as a result of they realized that they had been paying extra for inventory which wasn’t price as a lot because it claimed to be. They then bought off as rapidly as they may with a view to exit out of an unhealthy market after which the entire market crashed bringing about the entire dot com bubble to burst.
Members in the stock market range from small individual stock traders to larger dealer traders, who may be based wherever on the planet, and will embody banks , insurance companies, pension funds and hedge funds Their buy or promote orders could also be executed on their behalf by a inventory trade dealer.
This occasion raised questions about many important assumptions of modern economics, particularly, the idea of rational human conduct …