Tagged Questions

to be used for any question related to financial markets including share/securities markets, money markets, foreign exchange markets, commodities markets, bond markets, etc.

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0
votes
1answer
64 views

Where can I buy real gold and sell it later as shown in market?

I want to invest money in Gold. Where can I buy Gold and sell it later when the gold prices are high? (high in the market as shown in market NASDAQ/NYSE)
7
votes
3answers
491 views

is the bankruptcy of exchange markets possible?

Because exchanged markets like NASDAQ or NYSE are normal public businesses can they go into bankruptcy ? Supposedly they went into mysterious bankruptcy then what will happen to the listed companies ...
3
votes
1answer
72 views

Does investing money in other currencies help pad losses in case of a stock market crash?

I was just reading this article. Does converting USD to say Euros help pad oneself against a potential US stock market crash? While I understand that a US crash would affect the rest of the world ...
0
votes
1answer
38 views

Judge market efficiency from raw price action

Is it possible to judge just by tape reading and analyzing the price action, if a particular security in a particular market is efficient or not? I often read commentaries by experts that state that ...
-1
votes
1answer
80 views

Relationship between liquidity and an efficient market

If I have two securities A and B(they can be any combo of stock, etf, index, option ), then is it oversimplification to assume that if A has a more liquid market than B, then A is more efficiently ...
3
votes
1answer
135 views

Why government bonds fluctuate so much, even though interest rates don't change that often?

Why do government bond prices fluctuate on a daily basis on the bond market? I can understand the fluctuation of corporate bonds because they are tied to the credit worthiness of the company and ...
-2
votes
1answer
110 views

Why wouldn't an option's last trade price be between the current bid and ask? [duplicate]

In the option table for SPY there is a column called 'Price' and a column called 'Bid' and a column called 'Ask'. If I wish to buy a call option, I need to pay a premium. Which column is the premium ...
3
votes
1answer
77 views

Differences in conditions on shares to private vs. public shareholders?

The Wikipedia page about IPOs says this: A company selling shares is never required to repay the capital to its public investors. Does that mean that stocks bought on the stock market are somehow ...
3
votes
2answers
2k views

Will a company's stock price be affected when warrants are issued, or exercised?

A company has 500 million outstanding shares, and it issued 100 million warrants 10 years ago. Assume that none of the warrants has been exercised yet. If tomorrow all the holders exercised their ...
4
votes
1answer
80 views

How does the fluctuation in the foreign exchange market occur at the same time in all countries?

How does the fluctuation in the foreign exchange market occur at the same time in all countries? For example: If the U.S. Dollar depreciated, does it — and how — get automatically ...
3
votes
2answers
255 views

Market Making vs Market Taking (Quotes vs Orders)

This is in by no means a duplicate. I've found similar questions that didn't clarify. I'm simply wondering if there is a relationship between quote driven markets (market making) and order driven ...
4
votes
2answers
148 views

Stock buyer and seller information, and abuse of anonymous markets?

Is it possible to know who offered/offers and who bought stock? If not, what prevents a group of people to buy and sell stocks between them to "fake" interest in that stock and pump up the price?
2
votes
1answer
49 views

Market percentage growth per timeframe

Is there an indicator that shows price growth for a particular market item (stock, commodity, forex) per timeframe? I mean like price growth/decline in last 24 hours or other time period?
1
vote
1answer
73 views

How do markets “factor in” a future event?

I was reading an article in the The Economist about interest rates being set by the Bank of England. Regarding a potential future rise in interest rates set by the bank, the article said: Markets ...
2
votes
2answers
104 views

How do car market price companies get their data?

When i was in a car auction i talked with a guy next to me and he was writing down all the information of the auction. He told me he worked for a close by dealership and those numbers were used to ...
1
vote
1answer
101 views

What is this kind of price graph called, and what is it useful for?

What is this kind of graph called? How do I interpret it? What is it useful for? I can't even tell what the axes mean.
2
votes
2answers
652 views

Which is the most liquid market for trading?

I've traded spot forex and I found it really liquid (trades can be executed within a few seconds). However, in NSE (India) share market, it takes between minutes to days to sell the shares I've ...
-3
votes
1answer
180 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 ...
1
vote
2answers
233 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
106 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?
2
votes
3answers
1k 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
217 views

What does the term “match the market” mean?

What's the difference betweeng "matching" the market and "beating" the market?
2
votes
2answers
1k 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
181 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
72 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 ...
3
votes
4answers
4k views

How does a high share price benefit a company when it is raising funds?

A company about to raise money desires a higher share price, because that will permit them to issue less shares for the amount of money they need. If the share price drops, they would need to ...
4
votes
2answers
2k 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
2k 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
2k 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 ...
5
votes
3answers
3k 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
451 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
339 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. ...
6
votes
2answers
753 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
242 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
420 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
542 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
99 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 ...
29
votes
8answers
12k 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 ...
3
votes
1answer
175 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
461 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 ...
7
votes
3answers
335 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
156 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, ...
3
votes
1answer
87 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
112 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
2answers
213 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
995 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
2answers
224 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 ...
9
votes
2answers
5k 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
96 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 ...
6
votes
1answer
207 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 ...