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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81
votes
12answers
12k 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 ...
6
votes
5answers
2k 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 ...
10
votes
4answers
2k views

How do currency markets work? What factors are behind why currencies go up or down?

How do currency markets work? What factors are behind why currencies go up or down? What roles do governments, central banks, institutions, and traders have in the process?
9
votes
3answers
6k 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
366 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
7answers
1k 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 ...
3
votes
1answer
183 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 ...
6
votes
1answer
428 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 ...
4
votes
2answers
153 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?