New York Stock Exchange (NYSE) Thousands of publically traded companies are listed here. Companies sell, and others buy stocks in companies (making you a partial owner of the company).
In theory as the company does well, the stock increases, and you can sell it and make money, if it bombs, the stock drops and you loose money. (not too unlike gambling).
Many economists, or economic analysts, make predictions and statements about our economy from information known as "Dow Jones", sometimes you may also here of "S&P 500".
But to do know what these things actually are? Some people equate "Dow Jones" as just another word for the New York Stock Exchange (NYSE).
Dow Jonies -> A stock statistics company. They track about 30 of the biggest companies on the NYSE and use a math formula which creates a value known as "points" which basically specfiy how the market is doing
S&P 500 -> Another statisics company. It basically does the same things as dow jones but has 500 companies so the results maybe more accurate.
The important lesson:
When you hear things on the news stating the Dow Jones has dropped 500 points, or gained 1000 points or whatever it's doing at this moment. It is tracking only about 30 companies (some of the biggest). If one or more of those companies does bad, the points drop, if they do good the points raise, but it doesn't really mean a lot; it doesn't mean the sky is falling.
Just some food for thought!
Thursday, October 23, 2008
What is Dow Jones and S&P 500?
Friday, October 17, 2008
Seasonal Blogging, Startups and Work/life balance
Lisa Rousseau writes a great post here on Work/Life balance and startup companies. Her post, and the video from Jason Calcanis inspired me to add my own comments.
I am sure we all have experianced this pull of passions, from work (career), home life, and time for ourselves. There are so many things to focus on and it seems so little time.
As for Jason's YouTube video, here's my 2 cents
1) The notion that there are "Excellent", "Great", "Average" people I would say is incorrect. I think everyone is 'excellent' at something, and many are average at most things. The trick is probably to figure out what your are excellent at and what you are passionate about and work at that.
You can have multiple passions and not just one, but sometimes you have to focus intensily one just one of your passions, but then you need to move on to others.
The person who works 150 hours per week for 12 weeks is really no different then the person who works 40hrs for 52 weeks, they just reach their goals in different ways.
Unlike the Olympics, your life doesn't have to be a race to the finish, he who dies with the most toys isn't really the winner.
I am a fan of Covey's idea from his 7 Habits. Imagine you are at the end of you life looking back and ask yourself which would you regret most, the short term 150hrs week or the life long 40/hrs week. There is no wrong answer, it is a personal decision.
Regardless, awesome post Lisa, Glad to see you're blogging again whatever the reason!
