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If you want to correct someone, please correct them properly. You buy shares or instruments traded on Exchanges, which make up the "Stock Market". However, you
by SEJeff 10y ago
If you want to correct someone, please correct them properly. You buy shares or instruments traded on Exchanges, which make up the "Stock Market". However, you don't always buy on Exchanges (OTC/Over the Counter Trading). Those instruments can be equities (shares of a company) aka stocks, securities, futures, options, etc.
The Dow Jones Industrial Average (a common benchmark index such as the Standard and Poor's 500) is literally at an all time high and is on the cusp of 20,000: https://www.google.com/finance?cid=983582 https://www.google.com/finance?cid=983582
Edit: Changes "shares in instruments to shares or instruments". It was a bit ambiguous and I was originally trying to make it more obvious that shares are considered instruments (along with several other things traded).
- pwthornton 10y agoThe point of my post is that you are buying shares of something, and that crashes and downturns don't permanently harm your 401k. Also, crashes when you are young are good because you get to buy cheap shares. I could have gone into more detail, as you have done here, but that's not the point. The point is that downturns like the Great Recession do not permanently harm someone's retirement.
- JumpCrisscross 10y ago> If you want to correct someone, please correct them properly. You buy shares in instruments traded on Exchanges, which make up the "Stock Market" Shares are instruments [1]. (You say this later, but nobody buys "shares in instruments"). Exchanges, together with ECNs, OTC markets, broker-dealers, other market makers, buyers, sellers, arbitrageurs, investment banks, et cetera make up the stock market. [1] https://en.m.wikipedia.org/wiki/Financial_instrument https://en.m.wikipedia.org/wiki/Financial_instrument
- SEJeff 10y agoTotally correct. I had to reword that a few times but figured less people would understand it otherwise :)