Dow down 416 pts! - Why?

Why did the Dow go down? How does this decline compare to other famous declines (Great Depression, 1987, 9-11)? What will you do with your stocks? Is this a time to buy since prices went down? Explain.

This apparent decline in global stock markets was due to the fact that in tuesday China's stock market went down by a 9%. This incident made this globes economy shake. This disaster brought 416 pts on the Jones Dow making many companies loose millions of dollars. This decline relates to the Great depression decline since during that time period brought devasting effects to indrustriliazed countries. Sine the stocks went down and also the prices of the shares of many companies, Im going to take this opportunity to buy more stocks for less money, since eventually the stocks are going to go up, and I will earn more money by investing very little.

Opportunity Costs

What are opportunity costs? Give some examples. And give some examples from your own life.

An oppurtunity cost is the decision you make in giving up something and buying something else. For example my opportunity cost is that if I go to college im going to lose four years of work where im going to get money, but if i graduate, Im going to earn more money since I have a better education.

Types of Economic Systems

1. Traditional Economies: is an economic system in which resources are allocated by inheritance, and which has a strong social network and is based on primitive methods and tools. It's found today mainly in underdeveloped, agricultural parts of South America, Asia and Africa.
2. Centrally Planned (Command) Economy: This is an enconomic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income.
3. Market Economy: is an economic systetm in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a price system rather than by the state in a planned economy.
4. Mixed Economy: is an economy that has a mix of economic systems. It is usually defined as an economy that contains both private-owned and state-owned enterprises or that combines elements of capitalism and socialism or a mix of market economy and commnad economy

what is the difference between communism and socialism?
Communism is a political system basd on the sahirng of all work and property by the whole communiy. Instead Socialism is that the government should own and control all the major industries.

Stock Market Game

I plan on investing in some mayor companies since im not sure if whether small companioes are good or not. Some of the companies I have in mind are: UPS, AMT, SHA-WA, SNE and CSCO. Maybe ill consider joining a mutual fund but for now ill just be cosnervative and watch over my stocks to see how they go. If I see that one of my stocks go ratherly down than up i will sell it and buy a new one.