Stock Markets: The Castle in the Air vs The Firm Foundation Theory

Market Theory Investment Seminar Directory Introduction 3 Aerial Castle Theory 3 Corporate Basic Theory 3 Market Effect 3 Market Theory 5 Tulip Light Bulb Popularity 5 Today's "Tulip Light Bulb" Popular, Dot Com Crash 5 Conclusion 6 Introduction By the theory of air cast John The theory of the aerial castle According to John Maynard Keynes he was a well-known economist and a successful investor in the 1930s. Keynes' theory believes that the key to investment comes from supernatural or spiritual means.

Market events are associated with two major investment theories. Corporate Foundation Theory and Aerial Building Theory The index and individual stock price are valued to decipher the theory underlying investment decisions. The relevance of these theories is compared with the past events in the stock market and the events of the past "tulips" and "bubbles". These speculative factors and market events will be compared and analyzed. Books and historical prospects will be used to evaluate "tulip" and "bubble" events. Market information is evaluated via the Internet

The era of computerized trading has transformed the market into a global virtual exchange. However, investment theory does not change, it depends on the determination of future events. The basic theory of the company and the theory of the Aerial Castle are two basic means of making investment decisions. According to Marquiel's company-based theory, each investment has a strong anchor called "intrinsic value", which is determined by the present situation and future concepts (Marquiel 23). Using the company's basic theory to buy and sell shares is a simple theory to compare the actual price with the company's basic value, as the fluctuations return to normal according to theory. The theory of an aerial castle depends more on the psychology of other investors. This theory is a speculative theory, often called the foolish theory.