Elena Gutierrez, Chapter 7, Question 6

In chapter seven Wheelan makes it clear that this chapter is not a guide to making money in the stock market, but a guide on how the higher finical system of the stock market works. First off Wheelan writes about how capital is a necessity in finical systems. Wheelan also writes about how investment bankers invest in different stocks based on four rules. One of these rules is speculation. Wheelan made the point that most people analyze and make "investments" based on fluctuations and patterns. Sadly Wheelan also writes that the stock market doesn't always follow patters, and can sometimes be random. An investment a person makes based on recent data could still end up being a loss. Wheelan Proposes another rule that aids investment banker's in deciding what to invest in. The rule of diversity. Wheelan purposes that if a person invests in multiple stocks then there is a higher potential for finical gain, than if they invest in a single stock.