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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60
votes
6answers
28k views

Why is the stock market closed on the weekend?

It's all digital and done with computers these days, so why bother? Doesn't that just make the system less liquid, which is the opposite to one aim of having the stock market? Plus can't you just ...
38
votes
3answers
7k views

How did this day trader lose so much?

I recently read this article about a day trader that lost $100,000: A trader started a GoFundMe page to pay back $100,000 to E-Trade after a disastrous short Please explain this, because I can not ...
24
votes
4answers
24k views

How does a public company issue new shares without diluting the value held by existing shareholders?

When a public company issues new shares, the total number of shares traded in a secondary market goes up. Assuming there is no change in the fundamentals of the company and the profitability, I would ...
17
votes
4answers
761 views

How to invest in stocks without using an intermediary like a broker? Can shares be bought direct?

I am looking to buy stocks but I would like to do so without a broker. From what I can tell, the exchanges are good ole boys clubs that require you know (or pay) someone in order to participate. Am I ...
14
votes
7answers
2k views

What happened when the dot com bubble burst?

The Wikipedia article on the dot-com bubble defines it as: a speculative bubble covering roughly 1995–2000 (with a climax on March 10, 2000 with the NASDAQ peaking at 5132.52 in intraday trading ...
12
votes
5answers
260 views

What is the rationale behind stock markets retreating due to S&P having a negative outlook on the USA?

From a Bloomberg article published on 18/4/2011 Standard & Poor’s put a “negative” outlook on the AAA credit rating of the U.S., citing a “material risk” the nation’s leaders will fail to deal ...
12
votes
4answers
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, ...
11
votes
5answers
8k views

Where should I invest to hedge against the stock market going down?

Let's say that the stock market falls in value for whatever reason. Maybe a bank or two goes out of business, for example, and stocks fall 20-30%. What would you invest in if you were sure this was ...
11
votes
6answers
1k 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 ...
10
votes
2answers
2k views

Are stock prices likely drop off a little bit on a given friday afternoon?

My friend told me this but I can't find any information about it on the internet. His theory is that traders generally tend to close their positions on the Friday because they don't want to be ...
10
votes
1answer
3k views

Why is this stock price inflated by 70x its real price?

The price for CSP1 (London Stock Exchange) has a short term price history that indicates the prices are roughly 7000% of what they are in reality. For example, on Jan 29th 2016 the price was reported ...
9
votes
3answers
6k 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 ...
9
votes
2answers
230 views

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 ...
8
votes
2answers
645 views

How websites like Google have access to stock market data? [closed]

I was wondering, How websites such as Yahoo finance and Google can access market data? Do they buy API from somewhere?
8
votes
1answer
2k views

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 ...
7
votes
3answers
1k views

Am I understanding buying options on stock correctly

I'm just wondering if I am understanding Stock options correctly. Basically if I am watching stock XYZ. It's currently at $10 per share which I believe is low and should raise to 20 within 1 month. ...
7
votes
5answers
705 views

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 ...
7
votes
3answers
570 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 ...
7
votes
3answers
3k views

What is the point of the stock market? What is it for, and why might someone want to trade or invest?

Sometimes you have to explain this to young people or people unfamiliar with the stock market. Why would a company want to be a stock company? Why would a person want to trade stocks? How does a ...
7
votes
2answers
169 views

Can I open an investment account in the United States as a Green Card holder?

Can a green card holder open a Schwab investment account as a normal US citizen would, or most they open an International account? Funds to use would all be coming from a US bank and not overseas.
7
votes
1answer
514 views

Can one see the transactions in the stock market?

If I am interested to see the individual transactions in a certain exchange market (e.g. NYSE) for a certain stock (e.g. GOOG) - is it possible?
6
votes
8answers
6k views

What is the smartest thing to do in case of a stock market crash

What would be the best thing to do, if the stock market crashes? Should one invest in real estate, fonds, bonds or stocks? Or should one invest nothing at all? Since this could be the case soon it ...
6
votes
1answer
125 views

Can Mutual Funds Invest In the Start Up Market?

This question refers to this article. I can't find Snapchat anywhere on the US stock exchanges as a public company, so I'm assuming that the Fidelity Blue Chip was holding this through the start up ...
6
votes
5answers
415 views

Why are some long term investors so concerned about their entry price?

A long term investor is usually defined as someone who enters an investment for, say, 10, 20, 30 years or more. Generally they buy an investment to help meet a certain objective in their lives (e.g. ...
6
votes
2answers
11k views

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 ...
5
votes
3answers
2k views

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 ...
5
votes
4answers
5k views

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 ...
5
votes
9answers
2k views

What gives non-dividend stocks value to purchasers? [duplicate]

This is a question that has bothered me for awhile about the fundmental nature of the stock market as a whole, and no one has given a satisfying explanation. What is root cause of a stock having ...
5
votes
5answers
841 views

Where does the money go?

I've studied the derivatives market, and I've heard of a number of huge losses by firms; I've heard of individuals forewarning against investing in this market. I never hear about the big winners. ...
5
votes
3answers
320 views

Why does the stock market consistently overreact to the business cycle?

It's been shown time and time again (e.g. in Stocks for the Long Run) that the most profitable time to buy stocks is when sentiment is poor and that stocks usually recover very quickly at the end of a ...
5
votes
2answers
632 views

Harmony Gold Mining Company is listed on the NYSE and JSE at different prices?

If a company is listed on two separate exchanges the prices are kept similar by arbitrage opportunities. However Harmony Gold trades at $0.953 on NYSE and 1616 south african rand on JSE. The exchange ...
5
votes
4answers
184 views

Does bull/bear market actually make a difference?

This may be an extremely naive question, but it is often discussed on the news, here and in person (at least in financial circles) that it is easy to make money in a bull market, and harder to make ...
5
votes
2answers
405 views

With respect to insider trading, what is considered “material information”?

I'm trying to understand what is considered "material" information held by an executive of a company. There is company information that an executive (say insider) will know that a public investor will ...
5
votes
5answers
474 views

As a total beginner, how do I begin to understand finance & stocks?

As the title states, I'm a complete beginner to finance. I haven't had a financial background, by the time I got my first proper job I struggled to understand my wage. I did study engineering and am ...
5
votes
2answers
69 views

Stock trading models that use fundamental analysis, e.g. PEG ratios?

I'm a finance undergrad writing a dissertation on fundamental analysis vs technical analysis applied to trading. I'm finding it easy to build technical indicators such as moving averages, while it ...
4
votes
3answers
657 views

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 ...
4
votes
2answers
491 views

Can institutional, quant, or other professional traders “prey on” (make money from) retail investors?

I was recently reading a well known forum, and someone made this post: I worked for a large investment bank about 10 years ago, writing trading programs for quant traders who were market ...
4
votes
1answer
106 views

Money on the table: Lorillard (LO)?

Lorillard (LO) / Reynolds acquisition news was announced today. Reynolds will buy LO for 68.88 per share. However, the stock dropped today to ~ $60.17. The out of the money call options also reflect ...
4
votes
2answers
308 views

How far into the future is a stock future? How do stock futures work?

I have been looking at the markets recently and most of the time, I see similar articles on how the market is going to do depending on how futures did. I am not that familiar with futures, but how ...
4
votes
2answers
3k 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 ...
4
votes
3answers
225 views

Benjamin Graham: Minimum Size of the company

In the book "Intelligent Investor", Graham recommends a minimum annual sales figure of 100 Million $ as one of the criteria. How do we adjust this figure for Inflation and a country other than the ...
4
votes
2answers
564 views

How much time should be spent on Penny Stocks Trading a day?

I am a student studying and I got interested in Penny Stocks, because I hope to gain money earlier in my life. I hope to invest the first amount of money that I may earn by part time job; cleverly ...
4
votes
1answer
63 views

Is there no overlap of ticker symbol even if old company was unlisted or bankrupt?

I want to know if ticker symbols are always unique in all time period. Or is it unique only in currently listed companies?
4
votes
2answers
1k views

Getting (historical) Standard & Poor Stock Guides

Chapter 15 of The Intelligent Investor mentions S&P publishes (as of the 1970s) a monthly Stock Guide. Is this still a worthwhile resource? What's the best way to get access to this guide, ...
3
votes
5answers
276 views

What evidence exists for claiming that you cannot beat the market?

There seems to be a common sentiment that no investor can consistently beat the market on returns. What evidence exists for or against this? I have never seen any study or credible book that claims ...
3
votes
3answers
3k views

2008-2009 Stock Market Crash — what caused the second drop?

During the 2008 - 2009 stock market "crash", the bottom came in early March, not in the heavy liquidity and other banking crises in the fall. Do you remember what the history of this is, what ...
3
votes
4answers
787 views

If a stock has only buyers and no sellers how does its price go up?

I have been watching a stock for the past month. Nobody has been selling it, but every day the price has increased. If there are no sellers, it means there is no trading happening, so how can the ...
3
votes
2answers
142 views

How come we can find less than 1 Price to Book stocks?

I was wondering, if there is such a stock, why isn't everyone getting it as there is supposedly no risk. For instance, a stock like NYSEARCA:VDE has Price to Book: 0.78. Div yield: 1.99. Growing ...
3
votes
1answer
2k views

Is it illegal to buy stocks at a low price during a flash crash using a low GTC order?

We've seen several flash crashes in the past few years, and I suspect algorithms are some of what's behind these (see this as an example). In a short period of time, an exchange will suddenly see ...
3
votes
1answer
117 views

Have there been “flash bubbles”?

There is a lot of press about flash crashes, such as this one. Have there been notable "inverse" phenomenons, where the market sharply bounces up, only to recover close to its initial state a few ...