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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39
votes
6answers
10k 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 ...
15
votes
3answers
313 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 ...
12
votes
5answers
223 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 ...
11
votes
7answers
1k 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 ...
9
votes
2answers
185 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 ...
9
votes
1answer
4k 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 ...
8
votes
2answers
314 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 ...
7
votes
3answers
429 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
1answer
330 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 ...
5
votes
5answers
317 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. ...
5
votes
2answers
119 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
1answer
156 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?
4
votes
3answers
874 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 ...
4
votes
4answers
441 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, ...
4
votes
3answers
240 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 ...
4
votes
2answers
140 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
2answers
180 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
3answers
154 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 ...
3
votes
2answers
215 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 ...
3
votes
1answer
89 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 ...
3
votes
3answers
211 views

Table of how many years it takes to make a specified return on the stock market?

Suppose I want to know "if I want to make a 30% return on the stock market, how many years should I expect to wait?" I know the real answer is "it depends - if the market does horrible it could ...
3
votes
2answers
3k 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 ...
3
votes
1answer
90 views

Why people still look for “naked” short-sellng stocks instead of short selling CFDs

I have been doing some research about equity trading and the stock market in general, and I have a doubt. I see that a lot of people is looking for short-selling stocks, but that is not so easy ...
3
votes
1answer
96 views

meaning of “differing bought and sold value of shares traded;” “money flows into vs out of” a stock

at: http://www.avafin.com/articles/1018128.html I see: "Today, a total of 141 block trades were recorded, typically at least 10,000 shares of stock or more represent a single block unit. Further ...
3
votes
1answer
317 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 ...
2
votes
5answers
318 views

Can dividends be exploited?

Apple announced a dividend of $2.65/share on August 16th. I was thinking... could somebody buy, say 1,000 shares of Apple, receive the dividend, and then sell the shares right back? ...
2
votes
4answers
1k 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 ...
2
votes
2answers
594 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
2answers
124 views

Will a stop-limit-on-quote execute in extended trading?

As an example, if I have this order: Buy 500 Shares of XYZ at Limit Price of $5.00 and Stop Price of $4.50. Duration of this order is Good until Cancelled. Will that order execute during extended ...
2
votes
4answers
3k 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
2answers
123 views

Do marketmakers always quote a bid and ask simultaneously

I am trying to understand some MM (Market Maker) data that I have. As a follow up to a question I read about MM: How does a dealer (or market maker) earn the bid-ask spread on a stock? And to ...
2
votes
1answer
51 views

What is meant by a market that is technically strong

What is meant by a technically strong stock or a technically strong market? I understand what a fundamentally strong stock is, but what is a technically strong stock/ market? Does it mean a stock ...
2
votes
3answers
382 views

What exactly is BATS Chi-X Europe?

I was told that BATS Chi-X Europe is not a stock exchange, that rather it is an equity market. The Wikipedia article states that it is an alternative to exchange traded equities and ...
2
votes
1answer
216 views

What is the correlation between silver prices and stock prices?

I'm interested in the correlation (in the recent years, or even decades) between the silver (and maybe gold) prices and some stock market index. In other words, I'd like to know how strong is the ...
2
votes
1answer
200 views

When Employees are “Granted” Stock Options, is the Company encouraging Long-Term investments from them?

I'm not exactly sure I understand the "why" behind a Company reasoning for offering "options" to their employees to invest in itself. I've found it is very unlikely of the employees to exercise for a ...
2
votes
1answer
51 views

Conversion factor between tracker value and index value?

Where can I find what the conversion factor is between the value of a tracker and the underlying index, other than just computing it myself of course? Is it also explained how these conversion ...
2
votes
1answer
713 views

How do you calculate the P/E ratio by industry?

I would like to know how to calculate the P/E ratio by industry. On this website, it displays the P/E ratio for the current stock, the industry and the sector: FINANCIALS DTV.O ...
2
votes
1answer
319 views

Can heavy demand for options drive up or down a stock price?

I understand the market maker is the one quite frequently on the other side of my buy or sell option order (to make sure their is liquidity in the market, and offering the bid / ask spread as ...
2
votes
1answer
57 views

Do I pay bid-ask spread if I trade on NYSE

From what I understand from this MM vs specialist discussion , the job of the specialist is to bring buyers and sellers together as opposed to a market maker who buys from the seller and sells to the ...
2
votes
0answers
81 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, ...
1
vote
1answer
73 views

What to make of historical stock market volatility?

I looked on Google Finance today at the DJIA, and kept backing up the time window until I saw the whole display they had, from 1971 until today (Oct 2011). It seemed to me that the volatility--the ...
1
vote
3answers
350 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 ...
1
vote
2answers
1k 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 ...
1
vote
3answers
7k views

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 ...
1
vote
2answers
95 views

Explain the HSI - why do markets sometimes appear in sync and other times not?

Can someone please explain this to me: in 2006, HSI moved almost identical like indexes on the New York Stock Exchange. However, the crisis period (2007-2011) shows the deviation from the others. My ...
1
vote
1answer
57 views

What is meant by “buy-side firm” and “sell-side firm”?

Why are institutions knows as buy-side firms, and broker-dealers known as sell-side firms? From what I understand, both institutions and broker-dealers do both buying and selling, so what is this ...
1
vote
1answer
64 views

Where can I find a list of all reverse listings on European stock exchanges for a specific period?

From Wikipedia: A reverse takeover or reverse merger (reverse IPO) is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex ...
1
vote
1answer
483 views

How does a change in market cap affect a company's operational decisions?

When the market capitalization of a company goes up or down, should it affect the company operational/investing decisions? Does it affect its funding ability? I'm referring to a case where nothing ...
1
vote
2answers
2k views

Historical data files for NYSE/NASDAQ daily open/close price data?

is there a place to get free access to NYSE/NASDAQ historical daily open/close data? Perhaps going back like 10 years? I'm more interested in the DOW and NASDAQ 100 data for this range, not ...
1
vote
2answers
81 views

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?