to be used for any question related to financial markets including share/securities markets, money markets, foreign exchange markets, commodities markets, bond markets, etc.
-4
votes
1answer
31 views
Does market maker buy when nobody else is buying and sell when nobody else is selling?
In this investopedia article , they say:
Market Makers (MM) - These are the players who provide liquidity in
the marketplace. This means that they are required to buy when nobody
else is ...
-3
votes
0answers
42 views
After an IPO, does the increase in stock price provide more money to the company? [duplicate]
Companies go public so they can raise money by a funding round. My understanding is that the IPO is for this reason. They offer a certain amount of shares and raise X amount of capital, and the share ...
0
votes
2answers
166 views
Where does the stock go in a collapse?
During the crash at the end of 2008, pretty much everyone was selling their stock and the market tumbled approximately 50%. Who purchased the stock? Was it market makers or other people? I understand ...
0
votes
1answer
65 views
Can I invest in the USA or EU from an Asian 3rd-world country, over the Internet?
Is it possible to invest in markets in the USA or Europe from an Asian 3rd-world country over the Internet?
Does the laws of the USA or EU allow people outside to do so?
3
votes
2answers
111 views
“Inflation actually causes people not to spend”… could it be true?
Oasis Jnr claims that if inflation is high, consumers do not spend, because the high prices does not attract them:
...if inflation occurs then prices rise which will affect consumer
spending ...
1
vote
3answers
67 views
What does the term “match the market” mean?
What's the difference betweeng "matching" the market and "beating" the market?
1
vote
2answers
94 views
Why do some companies have stock symbols on different markets?
How come some companies have stock symbols in different markets? Eg. if I wanna buy stocks in Nokia corporation I see they have different stocks to choose from. How do I find out the difference ...
2
votes
1answer
73 views
Do online brokers use market makers?
If I use an online broker such as Trade King or Scottrade to buy shares of some company, how do they buy the shares? Do they have to go through a market maker? Is there a notion of the broker ...
1
vote
1answer
66 views
What is a trade exchange and are they reputable or not?
I am trying to understand the concept of a marketplace for B2B cashless transactions. What are some examples (if any) where participation in such a marketplace can prove equitably beneficial to small ...
4
votes
2answers
502 views
Meaning of capital market
From Wikipedia
A capital market is a market for securities (debt or equity), where
business enterprises (companies) and governments can raise long-term
funds. It is defined as a market in ...
3
votes
1answer
560 views
Quote driven and order driven financial markets
I know that
an order driven market is a financial market where
all of the orders of both buyers and sellers are displayed, detailing
the price at which they are willing to buy or sell a security ...
2
votes
2answers
371 views
Understanding the concepts of market maker and broker
Wikipedia says:
A market maker is a company, or an individual, that quotes both a buy
and a sell price in a financial instrument or commodity held in
inventory, hoping to make a profit on the ...
4
votes
3answers
303 views
How and why does the exchange rate of a currency change almost everyday?
How does the exchange rate of a currency change every day? Why does that happen?
Please explain to me with a naive approach and avoiding financial jargon.
3
votes
2answers
336 views
As an investor what are side effects of Quantitative Easing in US and in EU?
If I understood well Quantitative Easing basically means a Central Bank prints out more money of its own currency.
It seems simple to understand that it saves the country banks and the States by ...
1
vote
1answer
117 views
Stocks are traded on secondary markets?
From the book website for Economics Principles in Action by O'sullivan:
Stocks are traded on secondary markets called stock exchanges, which
in the United States includes the NYSE and Nasdaq.
...
5
votes
2answers
390 views
Why did the stock chart for Facebook's first trading day show an initial price of $42 when the IPO price was $38?
Facebook was widely reported as having an IPO price of $38. Yet, all the stock charts show Facebook shares priced at $42 until around 11:30 AM, than dropping to $40, and then only at 11:50 AM ...
9
votes
2answers
182 views
What investments are positively related to the housing market decline?
What investment sectors/areas generally go up when housing prices decline?
6
votes
1answer
354 views
Who sets the price and provides the quoted price values for stocks?
I somewhat understand that the price of stocks is determined by the market, but who exactly changes those prices that we see listed on Yahoo! Finance for example?
If I own a share in a company listed ...
2
votes
2answers
260 views
Discrepancy between market value and book value of a firm
I would like to know whether my reasoning is correct.
Differences between market value and book value shouldn't exist in "a perfect world", since the value of a firm is whatever someone would be ...
5
votes
2answers
52 views
Short-term robots and long-term investors in the stock market
Recently there are more and more robots that follow the short-term trends in stock markets and use it to bring immediate rewards to their owners. Since rewards don't come from thin air, this ...
25
votes
8answers
5k views
Why do gas stations charge different amounts in the same local area?
I've noticed there can be a 5%-10% difference in the price of gas where I live. For example right now the cheapest premium price is $3.85 and the most expensive is $4.17. It's the same state and ...
2
votes
1answer
129 views
Day Trading introductory books
I realize that day trading is considered to be highly risky, but the subject fascinates me and I would like to learn more about it as well as read about past experiences, both good and bad.
Do you ...
2
votes
1answer
219 views
Who are the various market participants in an initial public offering (IPO)?
Who are the market participants in an IPO?
From my understanding: there are no short sellers, and no standardized options. The insiders may be selling but there are also restricted shares that can't ...
6
votes
3answers
152 views
Efficient markets hypothesis and performance of IPO shares after lock-up period
It's noted here that the Linked In shares dropped 7% after restrictions on insiders from share sales expired. The layman explanation is that a greater supply of shares, and a desire amongst at least ...
0
votes
2answers
116 views
Is it possible to lower the price of a stock while buying?
Lets say the bid is 49.98 and the ask is 50.01, the midpoint is 50. Is it possible to intentionally place limit orders at 49.99, have them filled, then place limit order at 49.98, have them filled, ...
2
votes
1answer
72 views
Is the quoted ask and bid the best ask and best bid?
I'm wondering, if you're on a brokerage site that offers "real-time" ask and bid quotes, are those ask and bid quotes you see flashed on the screen necessarily the best ask and the best bid available, ...
4
votes
2answers
100 views
Is a book from 2005 about fixed income securities obsolete, or still relevant?
This is intentionally a very broad question. How much (if at all) has the fixed income securities market changed from say 2005 to present day?
The main reason I ask is because I am debating whether ...
5
votes
3answers
140 views
Mutual fund operations: How do mutual funds deploy incoming cash from investors in a fund?
I know there are many different answers for this depending on the strategy of the fund.
I have heard that some funds invest cash from incoming fund purchases into money markets until they are ready ...
5
votes
7answers
819 views
How to make money from a downward European market?
The trader Alessio Rastani speaks in a BBC interview about the development of the Euro zone and his predictions are quite severe. He predicts a crash within the next 12 months but is also telling ...
2
votes
3answers
207 views
Why is silver so volatile compared to the S&P 500?
As an example, silver took a 9.4% hit on 9/22/2011, which was a bad market day -- the Dow dropped over 3.5%.
The conventional wisdom is that precious metals like silver are a hedge against a falling ...
6
votes
2answers
2k views
How does a dealer (or market maker) earn the bid-ask spread on a stock?
If I am correct, dealers purchase assets for their own accounts, and
later sell them for a profit from their inventory. But the
spreads is the difference between buy (or "bid") prices and sell (or
...
1
vote
1answer
77 views
Guidance: New to stock market thing [duplicate]
Possible Duplicate:
How do I get into investing in stocks?
I am new to stock market, I had just opened up trading account, I will like to know a place from where I can read up the stuff and ...
4
votes
1answer
165 views
Can mutual fund prices have opening gaps? Might my order to be filled at a higher price?
My broker offers limit orders on mutual funds. I was curious if mutual funds have open gaps like stocks do. If I want to buy a fund if it goes up to a certain price, would it be safe to set a limit to ...
2
votes
2answers
100 views
Could someone explain this scenario about Google's involvement in the wireless spectrum auction?
Could someone explain this:
What will that mean? If history is any guide, Page’s idealistic
impulses could result in a vaster, more sprawling company. In 2008,
Google participated in an FCC ...
4
votes
5answers
486 views
Looking for a stock market simulation that's as close to the real thing as possible
The title says it all. I'm looking for a simulation stock market to play around with. One that is, ideally, as close to the real thing as possible.
I've heard that Investopia is a pretty good ...
3
votes
5answers
411 views
Why are the prices of some commodities (e.g. oil) more volatile than others?
Why are the prices of some commodities (e.g. oil) more volatile than others?
7
votes
4answers
497 views
Why does a stock's price fluctuate so often, even when fresh news isn't available?
I get it that the price of a stock goes up and down as fresh news is released, positive or negative.
However, fresh news is released only at certain times while the price of a stock changes (by ...
41
votes
11answers
4k views
Why would a company care about the price of its own shares in the stock market?
After a company has issues shares, why should it care if the value of the shares go up and down?
Since the shares are now being traded among the public, if the value goes up or down, that is strictly ...
2
votes
3answers
338 views
Discussing stock and stock index movement: clarifying percentage vs. points?
I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following:
"NASDAQ was down X points today ...
9
votes
4answers
2k views
Does Joel Greenblatt's “Magic Formula Investing” really beat the market?
Background
Joel Greenblatt's book "The little blue book that beats the market" is based on the premise that he has developed a magic formula.
I am heavily skeptical of anyone who claims that they ...
3
votes
1answer
79 views
Who sets the prices on government bonds?
I noticed my country Greece wanted to sell bonds last year and they were stating "If they go above 7% we won't sell.". But who sets the price if not them? Why can't they say "the price is 5% and if ...
5
votes
3answers
560 views
Where can I find a definition of psychological barriers with respect to marketable securities?
Where can I find a definition about psychological barriers with respect to marketable securities?
Re: the apparent phenomenon that stock prices sometimes tend to have difficulty crossing some ...
10
votes
2answers
281 views
How is exchange rate calculated?
assume that there is a very new island-country called xland. they decide to name their currency xdollar and there is 1000 xdollars in circulation. the very first foreigner comes and wants to exchange ...
3
votes
2answers
71 views
What is the best resource to research the current state of asset classes for mutual funds?
I have a fairly simple asset allocation as follows:
50% Large Cap stocks
15% Small Cap Stocks
5% REIT
10% International Stocks
20% Bonds
What is the best web site to track how each one of these ...
2
votes
4answers
175 views
How can I find out what factors are making a stock's price rise?
For example: Fannie Mae went up ~20% today, February 3, 2011. How come? What websites have you found to be useful in returning relevant information? It seems to me Yahoo Finance is not very good at ...
3
votes
1answer
152 views
Why are gasoline prices so hugely different between America and Europe?
I noticed in several cases it's triple or more.
4
votes
4answers
124 views
Is debt almost always the cause of crashes and recessions?
It seems every great crash, the underlying fundamentals always point to an ever increasing debt until it becomes unsustainable and bursts.
How true would you say is that statement above?
7
votes
2answers
281 views
Definition of “secular” in the context of markets?
When fund managers makes statements like this...
"... [many market] inefficiencies persist for years due to the long-term nature of secular and structural changes [...]"
... I assume that they are ...
14
votes
4answers
681 views
May 6, 2010 stock market decline/plunge: Why did it drop 9% in a few minutes?
Today (5/6/2010) the market dropped almost 900 points in less than an hour. I don't see any news story that explains the drop. Am I missing something obvious?
2
votes
4answers
965 views
Good iPad apps for business, financial, & market news & company/stock information?
I just bought myself a new Apple iPad. What apps exist for the iPad that can help somebody keep up-to-date on business, financial, and market news, including specific company or stock information?
