The stock market is known for its rapid rises and unpredictable falls, but last week’s brief meltdown was extreme even by those standards. When the markets opened last Monday, numbers were falling and traders were selling off their stocks in panic. Japan’s stock exchange fell more than 12 percent, the biggest plunge in 37 years. The S&P 500 — which tracks the stock performance of 500 of the largest U.S. companies — lost $1.3 trillion in value, or 3 percent, Continue reading
For years, going public on the New York Stock Exchange or Nasdaq was the culmination of a longtime dream for many companies. After all, initial public offerings (IPOs) gave stakeholders a good chance to get rich quick while also bringing in new capital to expand their businesses even further. Unfortunately, this has not been the case for the last 18 months as rising inflation and growing economic uncertainty has created a poor environment for IPOs. In recent weeks, though, several Continue reading
Last Friday, a combination of imprudent decision-making and panicked customers led to the collapse of Silicon Valley Bank (SVB), a 40-year-old financial institution based in Santa Clara, California. The Federal Deposit Insurance Corporation (FDIC) stepped in to prevent further fallout, putting nearly $175 billion in customer deposits under the regulator’s control. SVB’s meltdown represents the second largest bank failure in U.S. history, and the largest one since the 2008 financial crisis. As a result of this chaotic situation, stock prices Continue reading