An overview of the stock market and how it functions, including definitions of a stock and a stock market and why people would want to buy and sell stock.

Investigates the growth of shares in the Harvey Norman Company. Follows the daily share price and volume of share traded for a 10-day period. Researches any announcements about the company that would alter or affect any share prices.

Yesterday's plunge in the shares on Intel, Ebay, Amazon and other tech stocks in the wake of weaker than expected earnings reports serves as a reminder that buying the shares of well known companies does not protect investors against losses. Non-professional investors tend to buy these well known companies because of their familiarity, yet such stocks are often overpriced because such investors do not discern, or can not discern, when such stocks are pricey. They are being bought largely on the basis of brands recognition. And in this case, paying more for the brand may not provide an investment with a satisfactory return.

The Dow Jones Index is approaching 10,000 and NASDAQ is nearing 2,000, while Amazon, Ebay and Yahoo are trading at nosebleed levels, once again. Is the stock market ripe for another implosion? Although investors are overpaying for these three bloated stocks, there is plenty of value located elsewhere in the market.

Three factors stand out as the forces driving stock prices: oil prices, interest rates, and profit growth. Oil and rates drive prices mostly in the very short-term. Profits provide the underlying longer-term driving force and that underlying foundation remains very sound. Nevertheless, the volatile movements in interest rates and oil prices often distract investors. With the economy and corporate profits doing well, the market should perform reasonably well, even as the Fed raises interest rates somewhat more than is currently expected by the market.