# Tagged Questions

for questions that relate to stock markets. A stock market or equity market is a public entity for the trading of company shares.

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### Can we estimate the impact of a large buy order on the share price?

What I am trying to understand is: If we know the number of shares a company trades and the current price of the share, can we estimate what volume of trade that is required to move the share price in ...
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### How is stock price determined?

Is stock price determined only by the last trade that takes place? For example, if a stock I own is trading at \$3.42, and I place a Sell Limit order for \$0.00, will the stock price temporarily dip to ...
1k views

### Does it make sense to buy an index ETF (e.g. S&P 500) when the index is at an all-time high?

I have some money I intend to invest over the next 3-4 years. An important chunk of my portfolio would be invested in a stock market index ETF such as one representing the S&P 500. Unfortunately, ...
13k 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 ...
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### What price is a limit buy and a limit sell order settled at?

A market has an existing limit buy order at \$1.00. The market then receives a limit sell order at \$0.95, what price is the transaction settled at?
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### Can a trade happen “in between” the bid and ask price?

According to Investopedia: By looking for trades that take place in between the bid and ask, you can tell when a strong trend is about to come to an end. This is because these trades are often ...
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### How can I trade in U.S stock exchange living in India by choosing the broker in U.S?

I would appreciate if you kindly suggest an answer for this question.Anything incomplete in this question should be assumed. And also please suggest which is the best brokerage firm/broker for this ...
2k views

### Should I continue to invest in an S&P 500 index fund?

I am saving to buy a house in 5-8 years. This year I invested \$40,000 in a prominent ETF which tracks with the S&P 500. So far, I've lost \$3,250, that is the stocks are now worth \$36,750. I save ...
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### What are some simple techniques used for Timing the Stock Market over the long term?

What are some simple techniques used for Timing the Stock Market over the long term to beat average market returns? By long term I mean 5 years and longer. It may include investing directly into ...
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### What does “more buyers than sellers” in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
2k views

### When would one actually want to use a market order instead of a limit order?

I'm new to investing. I'm looking into using an online discount broker to experiment with private trading. I'm in a position I don't mind losing money, but I don't want to lose more than I put in. ...
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### Am I exposed to currency risk when I invest in shares of a foreign company that are listed domestically?

If a multinational firm based in country A is listed in both country A and country B, and I invest in this firm as a resident of country B through country B's stock exchange, either through something ...
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### When is the best time to put a large amount of assets in the stock market?

I'm interested in timing with regards to long-term index investing. Based on the advice of The Investor's Manifesto and others (John Bogle, William Bernstein) they stress how big a difference ...
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### Stock market vs. baseball card trading analogy

I will use a baseball card trading analogy to present my question: The baseball card trading market, like any other market, follows the laws of supply and demand. The demand for baseball cards can be ...
2k views

### Why would people sell a stock below the current price?

Say we have stock XYZ that costs \$50 this second. The bid/ask is 49/51. If I buy some stocks by setting a buy limit order for 47\$, and it succeeds, there is a match; someone is selling the stocks ...
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### Does the stock market create any sort of value?

Sorry if the below seems like a conspiracy theory. It probably is, but I probably don't understand something. (This has bugged me to no end as long as I can remember.) Okay, so here is what I ...
7k views

### If you own 1% of a company's stock, are you entitled to 1% of its assets?

Say you own 1% of company ABC's shares. If all of a sudden there is no more demand in the stock market for company ABC's stocks, and its share price dropped down to \$0, can you claim 1% of company ...
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### If I put in a limit order for the same price and size as someone else, which order goes through?

I put a limit buy order for 1000 shares at \$1.26, and another investor has also put a limit buy order in for the same amount and volume. If someone sells 1000 shares at \$1.26, which one of us gets the ...
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### Understanding a Trailing Limit if Touched Order

I"m trying to wrap my head around a Trailing Limit if Touched Order that is offered by Interactive Brokers. The order explanation is at Trailing Limit if Touched. What I'm trying to figure out is ...
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### How are market orders matched? [duplicate]

I'm trying to gain some insight into how orders on an exchange are matched to design a proof of concept matching system. Am I correct in assuming market orders are immediately executed against the ...