Can you explain in laymans terms what the markets actually are? What exactly are bonds, futures, stocks, commodities, gilts?
I'd like to know more so I can understand whats going on with the economy a bit more.

I understand its very complex, so any links would be good.

Economics for dummies!!

Steve

 

Good question / request.

I bet some goon comes on here and says use Google

How about someone just do as requested and throw up some explanations in layman's terms. I'd appreciate it, as would many others I'm sure.

Si

 

Just watch the news tonight, its been a bad day for the city boys today

 

I work in the city.






But for an insurance company so afraid im of no help

Edit....

But although this has affected us a bit (Lehman Bros had a Reinsurance arm ) I would also like to know more

 

Google it!

 

Up

 

http://en.wikipedia.org/wiki/Stock_market

 

Things have hit the fan again today big style

 

American Congress just turned down the plan to inject $700b into the american market. Im sure this will have a major knock on effect.

 

Very much so! Thats why i want to understand it more!

Just out of interest, what would happen if the FTSE went down to zero? What do the points represent?

Im reading wikipedia now (cheers mate ) so i might even answer my own question

 

i would like to know more as well there must be a few quid to be made on some stocks and shares as they are low at the minute

 

If you've got big balls, now is a good time to buy shares...

 

Trouble is if oyu buy shares in a bank/building soc and it gets taken over by the government the government decide what you get per share!

Happened to lots of people over northern rock...though it was a good idea to buy dirt cheap shares thinking they'd recover.

If you have money put it under your matress right now; its the only place safe! or buy gold. gold always stays relative despite any economic sways.

Dan

 

Great minds think alike...

Trouble is, i have NO idea what im doing so i'd be better off burning my money at the moment.

 

Buy a barrel of oil... most likely go up in value.

 

same here although i have heard that shares in barclays are one to watch at the minute

 

Did oil and gold not go up a fair bit today though as its seen as "safe" when the market is in such flux?

The stock market is always something i've been interested in and i know the basics of how it works, but just just never studied it in enough detail to be bold enough to invest in anything

 

dont know about gold but i know oil dropped by $7 a barrel today

 

good thing abotu gold is that it's inevitable that it becomes more and more scarce. same applies to oil but there has to come a time eventually where the demmand will drop.

personally i'd consider buying some shares in a very large moneybrokers

 

If the FTSE was at zero, it would mean that the leading companies stocks were all worthless, these top 100 companies represent about 80% of the total worth of all companies in the uk IIRC.

So you could buy the whole of Sony for a penny if the index got to zero.

Ie, it wont EVER happen, its just not possible for it to ever be at zero, the only way it could get to zero is if there were no companies left, and in that case, no one would pay FTSE for the index so they wouldnt compile it, so it wouldnt exist to be at zero, lol

 

Bad thing about gold though of course, is it doesnt actually have a use as such, at least with oil you can see WHY it will go up in value in the short term (ie increased demand as more countries industrialise etc)

 

Some shockingly bad advice on this thread!

Buy shares if you've got balls? Dear oh dear!

 

apparently the speaker in congress caused the vote to go the wrong way,her feelings were hurt so she changed her speech.
women

 

Rich,

what companies should people be buying shares in at the moment? While the market its low and comapnies arent worth as much, now must be a good time to buy yes?

 

The best company to buy shares in, is one that is about to go up.

But as the whole lot could potentially still go down a LOT more yet, im not convinced thats any of them right now. The old rule of the "value of your investment can go down as well as up" applies now the same as ever IMHO

Bear in mind that although the initial 700 billian dollar deal has been rejected, its being reworked and resubmitted, so the market will still have hope it will go through next time, or a smaller scale version of the same sort of plan, so current share prices, although low, still reflect that hope the next deal will go through, IF it gets rejected again, the market could drop again.

 

Why? I'm not an analayst, or a broker.

The market is all over the shop at the moment.

Look at the FTSE this morning. Has moved nearly 200 points in the space of an hour!

It's never about "what companies should I buy shares in" as it's never that simple. I could say go buy shares in this that or the other, and it might not move at all for you to see any gain whatsoever.

For gains in this type of market, you've got to be trading on margin so you can make your money work for you, but the risks are always high. Depends what you want - are you looking for a safe long term investment, or a quick punt?

 

You were never really certain of making money on the markets, now with the markets more unstable than a females hormones I would be happy keeping my money in my pocket, I would feel alot safer about it there.

 

Best way to double your money is to fold it in half and put it back in your pocket

I'd like to have a go at the markets, but like I said, aint got a clue, and i wouldn't risk a penny, tight coont that i am