subject: How Wall Street Trading Affects Us Jobs [print this page] Jobs are what's on everyone's minds these days in the United States.
It's impossible to turn on the television without hearing about the staggering 10 percent unemployment rate, the Obama administration's lack of promised job creation, and how many companies are reporting losses as the economy continues to flag. But did you know that Wall Street trading has much to do with job creation and retention in the United States?
Wall Street trading affects nearly every aspect of business in the United States. Unless you work for a private company or the government, chances are good that your company is publicly traded.
When a company "goes public" it means it has reached the necessary minimum assets to openly trade on the stock market. It then sells off its debt in the form of bonds to shareholders or invites the public to own a piece of the company's assets through stock.
Wall Street trading means no one person solely owns a company. It becomes the property of the stockholders who invest in it.
Companies want to be traded on the stock market because it means they'll grow larger. Doing so means more revenue and more success. And the more successful a company becomes, the greater there is interest on the part of investors to place their money with that company. This is why Wall Street trading and the US economy are so fundamentally intertwined. Wall Street's success is the US economy's success.
It is also worth noting that Wall Street trading - how well or not well the New York Stock Exchange is doing - is often used as an indicator of the health of the United States economy overall. When investors are confident in a company and in the economy, they purchase stock. When things aren't so good, investors are quick to hold onto their money in the event that things might get worse.
Consequently, when Wall Street trading investors aren't putting their money into a company, that company isn't likely to feel very confident about their future. And when that happens, companies hesitate to hire new employees. It's an endless cycle.
Often, a company will offer part of their stock - or shares - to their employees as part of a benefits package. This situation helps out both employer and employee by continuing to help build the company by adding to the employee's personal portfolio at the same time.
