Tagged Questions

The cost of a good or service.

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1
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3answers
41 views

What is the fair value of a stock given the bid and ask prices? Is there such a relationship?

I have often read that the fair value of a stock is the midpoint of the bid and the ask price. That means if bid is 100$ and ask is 101$ then the fair value of the stock is 100.5 $ and if I put in a ...
0
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1answer
23 views

Future price == strike price in the future contract?

Assume a future contract specifies that the holder of the contract will need to buy corn from XYZ farm at £100 per tonne, 1 tonne. So total deal value when realizing this contract is £100. We all ...
0
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3answers
26 views

Why is the future quote lower than the underlying?

I guess this is a simple one for experts: Looking now (12noon CET Nov 7, 2014) at the DAX ^GDAXI on yahoo finance, it says S = 9.361. The Future FDAXM5.EX quotes F = 9.388. What is the exact ...
4
votes
1answer
120 views

Is there a rule of thumb to help “Sanity check” insurance costs?

My house insurance is up for renewal. I'm busy and I don't want to spend a lot of time getting quotes, especially since this policy is tied to another one that is hard to get and that we could only ...
7
votes
4answers
948 views

Why is the price of my investment only updated once per day?

I have invested some money into a mutual fund (FTQGX). I've noticed that the price of it is only updated once a day, where as other investment options are updated continuously. Why is this? I'm ...
2
votes
2answers
270 views

Does Amazon.com offer price protection on purchases? If so, how do I request a refund?

I bought an XBox One from Amazon.com 2 weeks ago. Since then both Walmart and Best Buy have dropped the price by $50.00. Does Amazon.com offer any sort of price protection? If they do, how do I go ...
4
votes
1answer
80 views

Why do stocks priced above $2.00 on the ASX sometimes move in $0.005 increments?

On the Australian ASX price increments that a stock can move by is determined by the current value of the stock as shown below: Why is it then that sometimes a stock that is currently priced well ...
0
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1answer
97 views

How to interpret a big ask size?

If the Ask Size of a stock is more than the bid size, then is it fair to conclude that people are more desperate to sell than to buy and hence, the stock price maybe expected to drop ?
1
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1answer
31 views

Which r in perpetuity formula to pricing a business?

I am trying to guess a price to sell my small business. I don't understand a thing in the perpetuity formula. Which is the correct rate I have to put on it?
0
votes
1answer
52 views

Buy/Selling prices at the stock exchange represent someone Selling/Buying at that price?

I see in my trading system two price quotes for a stock. Buying and Selling. Does the buying price means that it is the lowest price someone is currently attempting to sell their stock? If so, then ...
2
votes
2answers
93 views

Is the best ask price the ask at the “top” of the order book? What is the “top” of the book?

In the level 2 book from BATS with live data, the right hand part of the page shows the best Bid(s) and the Best Ask(s). Example: How come the best Ask is not at the top of the book? From what i ...
4
votes
2answers
179 views

What will happen when a bid price is higher than an ask price?

Let's say, there are three bid prices 100, 101, and 102, and three ask prices 101, 103, 104. What will happen, will ask:101 sell to bid:101 or bid:102, if the dealer is going to make the 101 to 101 ...
0
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1answer
67 views

Looking for a term that represents open, high, low, close, volume

I'm writing a little test app this weekend and I'm trying to come up with a name that represents this data: open price close price high price low price time open time close volume So far I've ...
-2
votes
1answer
122 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 ...
0
votes
1answer
105 views

Reasons behind a large price movement of a penny stock without any recent news releases?

Sometimes I see penny stocks on the Yahoo! Finance page move by about 100% in a single day. For example, this stock shows a 91% gain on 10-Jan-2014. By browsing the news reports, I cannot see ...
3
votes
1answer
116 views

How are stock options priced?

I was reading the wikipedia article about the Black-Scholes model, and it says this: "The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling ...
7
votes
3answers
430 views

How does one typically exit (close out) a large, in-the-money long put option position?

I'm long some puts on a stock that has dropped a great deal. I've made $400,000 on an investment of $100,000. The question is, how do I exit? I can't really sell the puts because there isn't enough ...
3
votes
2answers
341 views

Effect of Quantitative Easing on Price of Bonds

I don't seem to understand the effects of QE. Fed uses open market to purchase long-term government bonds which pushes up the demand for bonds and drives up the price of bonds. However, this ...
2
votes
1answer
62 views

Difference between full and mini futures contract

What is the difference between the following two Brazilian futures contracts: The Ibovespa Futures Contract The Mini Ibovespa Futures Contract As far as I can tell, both are priced in Brazilian ...
0
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0answers
99 views

Black-Scholes model and options evaluation

may someone explain me how to use a Black-Scholes model in order to identify if a defined option is a valuable investment? Thank you in advance.
3
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1answer
2k views

How to calculate the closing price percentage change for a stock?

When viewing a stock on Yahoo Finance: ...
0
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2answers
74 views

How do you find the value of a physical product over a period of time?

Let's say you have a limited edition Ibanez rg1570 guitar and you wanted to find out what the average selling price was each year? I'd like to get a clue as to whether I should sell my asset now, Or ...
3
votes
3answers
222 views

Does a stock's price represent current liquidation of all shares?

For instance, if a stock is trading at 40 dollars per share, and there are one billion shares being traded, there will be a market capitalization of 40 billion dollars. Let's say the markets are ...
8
votes
1answer
848 views

When does a pricing error become false advertising?

If a product is advertised on a website at a certain price and you place an order which is later cancelled by the supplier because they claim the price is wrong and they do not update their website to ...
0
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2answers
182 views

Black & Scholes article : option pricing

I am currently reading the famous article by Fischer Black and Myron Scholes called 'The pricing of Options and Corporate liabilities'. Just at the beginning of the article, they go on and explain ...
8
votes
3answers
144 views

Is there a service to find the best & least expensive term life insurance?

How do I find the best and least expensive term life insurance? I'd love to see a listing for life insurance like BankRate.com does for savings accounts and mortgage lenders. Anything like this out ...
2
votes
2answers
2k views

Should I use regular or adjusted close for backtesting?

In an attempt to try and perform few backtesting tasks, I have obtained some historical data. I have noticed that there are 2 closing prices; regular close and adjusted close. After some reading, I ...
5
votes
1answer
987 views

What happened to the Google Price Index?

I've seen it before, but I can't find it anymore. I think I remember Google mentioning that it would only be available in graphical form, but not data form, and also that it would only show one year, ...
9
votes
2answers
762 views

Price graphs: why not percent change?

Apologies if this is a dumb question but: Why do price charts for securities like stocks and foreign exchange always show the actual price numbers instead of charting everything in terms of percent ...
3
votes
1answer
75 views

What approaches are there for pricing a small business?

How do you know how much a small business is worth? If someone were to sell their bed and breakfast (for argument sake), how would they know how much it's worth? ... or more importantly, how would a ...
3
votes
1answer
332 views

Can someone explain recent AAMRQ stock price behavior to me?

I'm interested in American Airlines stock (AAMRQ). Recently they announced a merger with US Airways. The resulting company is said to be worth $11B (USD). Tom Horton, the CEO, said that after ...
0
votes
2answers
757 views

Why are prices in EUR for consumer items often the same number as original USD price, but the GBP price applies the actual exchange rate?

Since my store started accepting EUR payments in 2002 I often see the numerically same EUR price as the original USD price. Many international suppliers, stores, e-shops offer the same items in US ...
3
votes
1answer
279 views

Is the concept of an “odd lot” adjusted to stock price?

This page suggests that orders under 100 shares of stock are considered "odd". I was told that stock exchanges "do not want odd lots". Is this statement true? For example, 50 shares of GOOG are worth ...
1
vote
2answers
189 views

How meaningful is the “stock price” of a stock?

If a visit, for example, stock information for GOOG, I will be given a stock price for every point in time. How meaningful is that stock price? Is it not the actual trades occurring that are ...
2
votes
3answers
395 views

How does stock dilution work in relation to share volume?

I'm aware of stock splits/reverse splits used for modifying volume of a stock, but how often are they actually used? Isn't it less common that a company simply decides to sell more stock at the ...
2
votes
4answers
5k views

Is there a mathematical formula to determine a stock's price at a given time?

I have been trying to find exact information on how stock prices are determined but still I haven't found any exact mathematical formulas how it happens. Wikipedia states: When prospective buyers ...
2
votes
1answer
202 views

What factors would affect the stock price of a sports team?

Manchester United is IPO-ing pretty soon. What sort of factors would affect their share price? Unlike most companies, they don't have product announcements, weather and political factors don't really ...
3
votes
3answers
911 views

Methods for forecasting price?

I've been having a really fun time building a site about pricing in my spare time. Here are a few example pages: http://www.settingprice.com/services/14/price-of-electricity/ ...
5
votes
2answers
878 views

Valuation, pricing, and analysis of securities

I was wondering what differences are between valuation and pricing of securities? To me, they seem identical and for identical purposes. If not, what is each of them trying to get from what is ...
2
votes
3answers
198 views

where to get stock price forecast

I am new to stock market so please be patient with me if my question does not make sense. I have an IRA account with Fidelity. Their research tool is good and shows analysts opinion of stocks i am ...
1
vote
1answer
504 views

Can you explain this options calls & puts quote table to me?

I was doing some research on options and I found the attached screen. I have no idea what it means. Can someone please explain the columns of the table and how to use such a table when looking up ...
5
votes
2answers
211 views

It is worth using a discount stock broker? I heard they might not get the best price on a trade?

I read somewhere that using a discount broker such a Trade King could actually cost more money because they may not be able to get the best price on a trade. Is there any truth to that? I am currently ...
4
votes
1answer
214 views

What happened in Argentina in 2001 bank sector? did the banks closed? all or some?

What happened in Argentina in 2001 bank sector? did the banks closed? all or some? i am trying to figure out whats the possible scenario to greek banks if greece goes out of euro and into drahma and ...
6
votes
2answers
762 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 ...
6
votes
1answer
422 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 ...
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 ...
2
votes
3answers
752 views

What effect does a company's earnings have on the price of its stock?

I have been trying to figure out the answer to this question this afternoon, and it seems like most people are saying that supply/demand determines the price of a stock. It seems that earnings, which ...
1
vote
2answers
164 views

What is a good/reliable source for current and historic gold prices?

In searching for the current and historic price of gold, the kinds of sites I'm finding seem a bit questionable. What is a reputable site for information about current and historic prices for gold?
6
votes
2answers
179 views

Effect of country default on house prices?

What effect would a sovereign default of a European country (i.e. Italy/Greece) have on house prices of the same country that goes in default? What does the previous literature says about similar ...
2
votes
2answers
197 views

Are forward curves useful tools for trading decisions and which informations can be gathered from them?

According to "Investor Words" a forward curve is a graph of forward interest rate values over different time periods. A forward curve is a way of evaluating the time value of money. How are those ...