Chapter 27 talks about the field of finance. It is about the choices people make for allocation of their resources and their risks over time. People tend to avoid risks by buying insurance making sure to diversify their stocks and investments. This does help avoid risk, but does not eliminate all risk since the economy is fickle and uncertain. A person could spend a while trying to find out which stocks to invest in or choose at random and the outcome will most likely be the same. The stock market shows all the information of a stock through its value. If the company does well and starts to gain more profit through expansion or a new innovation then the value and price of the stock will go up. The opposite can happen to, a company can start to do worse and the stock value and price will fall. However there is not real way to predict the rise and fall of stock prices because anything can happen. A company could create a new highly popular product that will skyrocket the stock price, but then a week later the product can end up having a huge defect causing recalls and the stock price will plummet.
I give this chapter a 1.5 out of 3. The chapter was fairly short, but I'm still a little confused on the new topics.
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