Tagged Questions

1
vote
2answers
71 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 ...
9
votes
2answers
136 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 ...
2
votes
1answer
136 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 ...
1
vote
2answers
119 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
150 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
324 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 ...
4
votes
2answers
166 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
161 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 ...
5
votes
2answers
390 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
354 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 ...
1
vote
2answers
250 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 ...
6
votes
2answers
2k 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 ...
7
votes
4answers
482 views

Why does a stock's price fluctuate so often, even when fresh news isn't available?

I get it that the price of a stock goes up and down as fresh news is released, positive or negative. However, fresh news is released only at certain times while the price of a stock changes (by ...
6
votes
4answers
282 views

Got a large cash sum, wanna buy stocks. Should I buy all at once, or spread it over time?

Suppose that I just received a large sum of money, that I want to use to buy stocks. Is there an advantage to split my stocks purchases over a period of time, to protect me against the risk that ...
45
votes
11answers
5k views

In the stock market, why is the “open” price value never the same as previous day's “close”?

This is something that is mind-boggling to me, and it is particularly obvious in candlestick graphs: Why is the open value never the same as the previous day's close value? This is something I just ...