Topic 25 Stock Hot

From 2006, the index of Shanghai stock marketrocketed from 2600 to 6000, and the stock price ofmany companies increased several-fold, and evendozens-fold.

This has attracted thousands of Chinese to rush intostock market one after another.

Some relatives and friends of my family havefollowed the suit as well.

Why so many people swarmed into stock market?

The reasons are various.

Firstly, the benefit has huge power:if you buy at the price of 5 a share and sell at 8 twomonths later,what a big money!

Secondly, people are extraordinarily confident and optimistic about Chinese economy,so arethey about the stock market, an important showcase of economic development.

Thirdly, people know more about investment and they want to put their knowledge into practiceand try their fortune.

With the stock hot, many people withdraw money from their bank accounts and invest in thestock market, neglecting their study, jobs and even family life.

However, bubbles appear in some industries, which make quite a lot of people go bankrupt.

Therefore, it’s really urgent to cultivate a rational view about investment in the stock market.