By: Aaron Smith

Definition: Economics

The disposition or

regulation of the parts

or functions of any

organic whole; an

organized system or

method.

Macroeconomics

The Big Picture

The branch of economics dealing with

the broad and general aspects of an

economy, as the relationship between

the income and investments of a country

as a whole.

Microeconomics

Looking Closer into things

The branch of economics dealing with

particular aspects of an economy, as the

price-cost relationship of a firm.

Stock Market

A particular market where stocks and

bonds are traded; stock exchange.

Well known stock markets in the U.S.

are the NYSE (New York Stock

Exchange) and the NASDAQ (National

Association of Securities Dealers and

Automated Quotations.

What Is A Stock?

The shares of a particular company or corporation.

When you buy a stock you buy a part of the company and then you own a share in that company.

The more stocks you buy the more of the company you own, letting you have more influence in that company.

Bull Market

A market where a group of securities are

expected to rise.

In a bull market you want to buy or hold

onto your stocks.

Bear Market

In a bear market prices of a certain

group of securities are expected to drop.

In a bear market you would want to sell

or purchase other investments that look

promising over a long period of time.

Gross Domestic Product

Abbreviated G.D.P. the gross domestic

product is the measure of gross national

product excluding payments on foreign

investments.

The higher the G.D.P. the better the

economy is.

Review Questions

What is the economy?

How do we measure success of the

economy?

What are two of the major stock

exchanges?

Sources

All definitions were taken from www.dictionary.com

http://dictionary.reference.com/browse/economy

http://pontoniere.blogautore.espresso.repubblica.it/2009/03/12/the-economy-has-lost-its-bottom-and-decoupling-its-out-of-fashion/

http://ocw.mit.edu/OcwWeb/Economics/14-121Fall-2005/CourseHome/index.htm

http://moneyning.com/investing/not-caring-about-the-wild-stock-market-swings/

http://mmiller81.wordpress.com/page/2/

http://blog.newsok.com/smokeandmirrors/2009/04/01/doomsday-end-of-the-world/