Question

As you've read in your text, the overall percentage of U.S. citizens participating in a stock market either through individual holdings or through financial intermediaries such as mutual funds has declined since the 2008 recession. Prior to 2008, a greater percentage of Americans held stock market investments than do in 2018. This is an interesting characteristic, given the following factors:

1. Investing in the market through savings plans, 401k or 403b accounts, individual IRAs, or similar retirement plans has never been easier given the amount of information available to any individual. Individuals can invest small amounts such as $20 and benefit from dollar-cost averaging through automatic deposits and electronic transactions such as payroll deductions.
2. While a vast majority of Americans will be dependent on Social Security as their primary source for retirement income, the message that relying solely on SS for retirement continues to be broadcast by media outlets such as the AARP.
3. Since 2008, the markets have rebounded significantly from their 2008 lows.
4. Basic principles of investing are easily located on the internet, from a variety of sources. For example, see the "Index Card" resource posted in Week 5, which is a short list of fundamental investing principles.

For this discussion post, you are to state a position and present an argument related to the above state of investing by U.S. citizens today. Why has the overall percentage of Americans invested in the market decreased in the last decade? And, subsequently, what can be done about this?    In your argument, which is to be supported by both textbook and outside research, delve into one or more of the primary concepts presented in this week's readings. These include the various stock market indexes, international markets, the role of the mutual fund industry, active versus passive investing, in addition to multiple other concepts.

Answer 1

/Stock Markets are acting as a Key factor in Country's Economic Development. It allows the Investors to invest their saved money in order to earn Huge Returns. Stock Market with higher Liquidity are said to be Good Indicator of Increase in the Value of the Shares. Developed Economies like US Economy attracts many Investors in the long-run.

Prior to 2008, Investors got satisfiable returns even with less amount of investment. Before investment in the Stock Market, All Investors was aware of the Prons and Crons of the investing in the Stock Market. AARP Group (formerly known as /American Association of Retired Persons) furnished all relavant details of the Stock Market. It forecasted many future uncertainities of Stock Market. So Many investors saved the money instead of loosing the Money in certain period.

401k and 403b are termed as savings plan in which American Employers can offer to the Employees at their own discretion. Employees can contribute $18500 per year up to 50 years of age. After attaining the Age of 50 they can get as returns as Pension of $24,500. Thus in turn Employees can invest either fully or partially in Stock Market. AARP also deseminates some useful facts to the employees about best Optimal Retirement Plan.

Before 2008, The common people Mortgage-backed Securities (MBS), Investors benefits from the Optimal Interest payments and also other source of investments like Direct Investment through final settlement amount obtained in Pension Plan. Then Awesome Dividend Stocks were Guaranteed. And also when Inflation occurs, The Purchasing Power reduces within the prospective Consumers. So when Windfall Investments related with Good Speculative activities the Rate of Purchasing Power increases.

The main cause of the Stock Market Crash 2008 was suddent Crisis Occured in Subprime Mortgage. This was due to Increasing rate of Debt coping with the Less level of Amount in the Lending Banks. This was termed as Poor Debit to Equity Ratio. In turn Banks reduced the Rate of Interest for the Investors. Thus Shortening of Values in the Stocks took place to evidence the Stock Markek to face heay loss. Many Speculative Activities were affected in the Brokerage Activity of Stock Exchange.

Stock Market Crash occured on September 29, 2008. The below table depicts the fall down in the Stock Exchange Points. It was derived from the Outside Source. All Resembles only negative count which are the bad indicator of the Economy.

Date	Rate of Negative Points
2/5/18	-1,175.21
2/8/18	-1,032.89
9/29/08	-777.08
10/15/08	-733.08
3/22/18	-724.42
9/17/01	-684.81
12/1/08	-678.92
10/9/08	-665.92
2/2/18	-665.75
8/8/11	-634.76

SEC (Security and Exhange Commission) should monitor the Stock Market Crash by appointing Eminent Economic Professionals to took quick remedy to close the situation and The Commission should take the necessary action of balancing the Debt to Equity Ratio in Optimal Level without affecting the current Economy.