By Toma Lynn Smith

“Dow suffers sudden plunge,” was the headline on the cover of the Courier-Journal last week.

There is nothing to fear according to Dr. Russ Ray finance professor at the University of Louisville College of Business. “[The] economy is healthy,” Ray said.

There is nothing to be concerned about.

“If they’re not cashing in the stocks anytime soon, it’s really not going to affect them,” Ray said of current stockholders.

Aside from a business student, many students may wonder what a stock is.

Holly Hartman, a writer for http://www.infoplease.com, defines it as “a supply of money a company has raised.

“This supply comes from people who have given the company money in hope that the company will make their money grow.”

Mary Gen Holmes, a senior marketing major, hopes to invest for herself in the future, and said she has some knowledge of stocks and the stock market now because of her business major and her parents.

Her parents invest for her currently and have used income from stock investments to fund part of her college education.

However, about four years before entering college, Holmes parents lost money in the stock market.

Their losses were recovered, because of positive changes in the market. Holmes’ parents didn’t pull their money out, they stuck with it.

As result of that, Holmes said, “It has afforded my parents extra luxury that they wouldn’t have had, had they not invested in stock.”

Matt Hurwitz, spokesperson of the discount brokerage firm Charles Schwab, said there is no need to panic in response to the Dow decrease last week.

To be a safer investor, a mixture of investments is the key, Hurwitz said. Choose various types of investments such as mutual funds and bonds, and don’t just stick with one company or one particular product or products. “Diversify,” Hurwitz said.

Lindsey Allen, a sophomore whose major is undecided, said, “I plan to invest once I understand it.”

Allen said her current understanding of stocks is, “Put money into a certain company. They do good, you do good.”

If these students do choose to invest in stocks in the future or now, if financially possible, the message is loud and clear: Don’t be scared.

Ray said the reason for Tuesday’s stock market drop is, “People reacting to bad news.”

That bad news came from Ex-Federal Reserve Chairman Alan Greenspan who Ray said helped spark the U.S. crash. “People hang on every word he says,” Ray said.

Ray added that Greenspan recently said that the U.S. economy is not very healthy.

Many believe in Greenspan’s words. “People still think he is a god,” Ray said.

The Courier-Journal stated, “Stocks had their worst day since the Sept. 11, 2001 terrorist attacks.”

Hurwitz admitted this did not come as a surprise and “it will bounce back.”

“Not a big deal. That’s the way the economy functions,” said Ray.