Stock Market Created Wealth

Business / April 23, 2015 / No Comments /
Discusses the wealth effect and consumer behavior; stock market gains and effect on companies.

The stock market saw significant increases during the 1990s, and the New Economy and dot com companies also changed the way that workers are compensated for their contributions to organizations. Increased numbers of individuals began participating in the stock market either directly or through their retirement and pension funds, and Internet stocks in particular garnered headlines as Internet millionaires were created through stock options given to employees who benefited when companies were taken public. However, many of these individuals did not realize their gains in cash, but rather only on paper, although it changed their overall net worth nonetheless. This research examines the wealth created by the stock market and how that wealth has affected consumer behavior, companies in general, and …

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