Personal statement-Finance

 
<p class=”p1″><span class=”s1″>When I was a child, whenever performing well on exam, I was rewarded with 10Yuan. Given the sense of accomplishment and self-fulfilling for managing finance by myself, I got a better understanding of the power of money which can keep me happy from within and motivate me further. As gaining more money, I was adept at making wise financial choices, an attribution that has served me well since I lived in another city alone. It is this kind of experience that made me become fascinated with money and have remained so ever since.</span></p>
<p class=”p1″><span class=”s1″>My first step to enter the financial world was to participate in a business competition called CYBL, which was organized by Harvard Undergraduate Economics Association. Given the background of Alibaba, I was supposed to analyze how Alibaba got into the North American B2B market. When writing the report for the pros and cons of getting into the U.S market through using PESTE analysis model, I considered that the Dual-Class shares, which are allowed in the U.S. but in China and include Class A and Class B, could be a great opportunity for Alibaba, if they went public in the U.S. To be more specific, in the North American B2B market, what Alibaba is facing is fierce competitors, such as Amazon; The Dual-Class shares can ensure that Alibaba’s founder and top executives are able to maintain control over the whole business through holding Class B shares when the public equity market can provide them with financing. In the Dual-Class shares, Class B shares carry more votes than Class A shares. Therefore, Alibaba can survive and become prosperous in such a competitive environment. This idea was confirmed by the final grade of this report. It is this competition that has aroused my fascination with the stock market. </span></p>
<p class=”p1″><span class=”s1″>Investing experience that I completed at Personal Financial lab, which is a mock investing website, has enforced my comprehension of stock. I was supposed to trade promising stocks and get return based on the original portfolio value of 100000 dollars. Having learned Keynesian Beauty Pageant Theory and some other theories, I have obtained the skill of predicting the trend of the stocks and decreasing my risk by putting my eggs in different baskets. However, the most fascinating thing was when planning to buy Google’s stock, I found that Google had two ticker symbols—GOOGL and GOOG. I was wondering if these two ticker symbols have something to do with class structure.<span class=”Apple-converted-space”>  </span>Therefore, I read an article called “Alphabet’s GOOG vs. GOOGL: What’s the Difference?”, which testified my hypothesis and complete my knowledge system of class structure—GOOGL shares are Class A shares which are known as common shares, and GOOG shares are Class C shares which have no vote. </span></p>
<p class=”p1″><span class=”s1″>After that experience of investment on Personal Financial lab, I was eager to delve deeper and more extensive in the financial field, not just in stock market. At that time, the proliferation of COVID-19 affected our international economic and financial system within just several months, then I was worried that a Financial crisis would happen again, just like the one in 2008. Finding the same occurrences happening now as those in the Financial crisis in 2008 can be one way to predict subsequent reaction of financial world to virus. At present, due to the long-term shutdown of many factories and companies, some of which would declare bankruptcy, such as Lord Taylor,<span class=”Apple-converted-space”>  </span>the underemployment rate has skyrocketed, which has seriously hit the job market. Having read the<span class=”Apple-converted-space”>  </span>article “ Divided decade: How the financial crisis changed jobs” written by Tommy Andres, I have learned that the level of financial security you achieve in life can have a lot to do with the economy in which you start your career, making me realize that assisting those current grads in dealing with finding jobs should be a relatively effective way preventing financial crisis from recurring. When reading further, I learned that graduating into a recession made finding an entry-level job tougher —those post-recession hires got paid less, received fewer benefits and faced a longer climb to advancement. This point gave me a specific idea that the government should provide those companies or factories, which are on the verge of bankruptcy, with support funds for making them survive from disappearing, so that the new grabs are able to have more opportunities to get jobs and regular training. In addition, the government should encourage cooperation among companies, allowing them to have more chance to get profits and then keep their workers’ salaries from too low. Therefore, job market can be saved and the advent of a financial crisis will be prevented. </span></p>
<p class=”p1″><span class=”s1″>In the next several years spending in the university, I will sharpen my knowledge further, with a keen fascination for finance, and successfully launch a startup after university.</span></p>