Questions tagged [markets]

to be used for any question related to financial markets including share/securities markets, money markets, foreign exchange markets, commodities markets, bond markets, etc.

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3answers
97 views

Interest rates and what does “discount” mean?

I was reading an article that says "Interest rates play an essential role in financial markets. Foremost, they represent the rate at which investors discount risk-free as well as risky future cash ...
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2answers
39 views

What is the difference between Overnight Repo Operations and Term Operations When talking About the Repurchase (Repo) Market?

According to the NY Fed website: In accordance with the most recent Federal Open Market Committee (FOMC) directive, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New ...
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3answers
130 views

Bid and Ask in Stock Market

Further to the discussion on "Can someone explain a stock's "bid" vs. "ask" price relative to "current" price?"Chris W. Rea answered: In a stock market, the bid and ...
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2answers
127 views

CDOs before the 2007 crisis

I read somewhere that before the financial crisis of 2007 the financial instruments (CDOs) were so complex that the investors could not analyze them. Were they just complex or was there no public ...
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4answers
259 views

How much would a trading robot which doubles money in a period of time sell for? [closed]

How would factors of this calculation change for the rate of doubling, scalability (the maximum amount at which it begins to become less efficient), risk and other factors you might bring up a ...
3
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1answer
315 views

Why all assets seem highly priced?

Thinking about All Weather strategy, I looked at a number of financial asset indexes and their prices over the past year: US Stocks US Medium-term (7-10 year) Treasury Bonds US Long-term (20+ years) ...
3
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1answer
3k views

How do brokerage firms make money?

I know that this question has been hinted at on other open question sites like Quora but I have yet to find anyone who lists all of the points in one place. I understand that firms make money by: ...
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1answer
134 views

Getting Started with Algorithm Trading [closed]

I was curious if it is feasible and worth my time/money to build a trading platform using external APIs and libraries or is it easier to use something like TD Ameritrade. In other words, are there any ...
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3answers
994 views

Does an individual share of a stock have some kind of unique identifier?

A security has an ID like a CUSIP or an ISIN. Does an individual share of a stock have some kind of unique identifier? The sort of thing that once would've been printed on a stock certificate, back ...
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1answer
46 views

Bond prices - present value

I'm reading a text of Macroeconomics - Financial Markets as a chapter. It has a line which states: "Suppose you hold two-year bonds. Because the price of a two year bond is $P, every dollar you put ...
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1answer
676 views

How are unmarketable market orders (other side of the order book is empty) matched with incoming orders? [duplicate]

Note: This question is erroneously marked as a duplicate. It concerns a very specific situation with unfulfillable market orders in very illiquid markets, one that no other discussion here has covered....
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4answers
297 views

How can I find out what factors are making a stock's price rise?

For example: Fannie Mae went up ~20% today, February 3, 2011. How come? What websites have you found to be useful in returning relevant information? It seems to me Yahoo Finance is not very good at ...
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1answer
158 views

How to invest in a specific market without investing in a specific company?

Let's say I am bullish on "Cloud Computing" and I want to make one investment, but do not want to invest in any specific company (e.g. Amazon). How could I invest soundly in the "Cloud Computing" ...
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8answers
32k 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 ...
3
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2answers
435 views

What causes S&P 500 to grow faster than inflation? [closed]

Facts Average annual rate of USA's inflation is ~2% for the past couple of years Average annual return of S&P 500 is 10% Why? Many people suggest to move your money of your bank, which is maybe ...
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2answers
202 views

What do people mean when they say US 10 year Government Bond?

I am very new to investing and I am particularly interested in fixed income product. I am just wondering what do people mean when they say US 10 year Government Bond? This term confuses me as I can ...
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4answers
252 views

Efficient market hypothesis

According to the efficient market hypothesis, does the price of a stock take into account the company's growth prospects? It says that it is hard to find undervalued stocks but theoretically, is it ...
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5answers
757 views

Is it possible that any security listed in one country but trades in another country

For example a company which listed in Europe but trades in US market or vice versa. Could you please provide few examples of such securities. I found that depository receipts are foreign company's ...
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2answers
400 views

How does a company have a net loss in their income statement, but their stock market value still rises?

For example in the case of Tesla, they always have a net loss in their operating income, but still their market value keeps increasing. What do the shareholders get as dividend? Do shareholders get ...
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3answers
327 views

Is there benefit in waiting for a stock market to open?

I am planning to purchase shares of a particular company that produces electricity using renewable wind power. The share price after market closure yesterday was 13.60. The price has been remarkably ...
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2answers
311 views

Planing to invest into DAX/S&P500/NASDAQ100 soon. Should wait for market crash?

I hope this question isn't too opinion based, even if I'm afraid it might be. Looking at historical data, one could argue that a market Crash in 2018/2019 might probably happen. Obviously no one can ...
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1answer
137 views

Does divestment work?

Divesting from funds seems to be a vogue topic which I am hearing more about. The most prominent stories seem to be related to fossil fuel investments and national pension schemes. These institutions ...
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2answers
1k views

Are there multiple Bitcoin markets?

I have the (possibly wrong) suspect that Bitcoin questions are not received too well here, so I kindly ask you to go easy on me :-) According to this question we should categorize Bitcoin as a ...
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1answer
103 views

Margin accounts and futures delivery

I'm trying to understand the market mechanics of futures with delivery. For sake of example, assume 0 interest rates and no cost of carry, and that I bought a futures contract on Jan 1 with Feb 1 ...
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2answers
92 views

Is Buy X sell Y equivalent to sell (y-x)?

Suppose I have 2 trading strategies that independently comes to a conclusion, that in a market day, I am supposed to Buy X shares of Stock A and Sell Y Shares of the same stock A. Now, this need to be ...
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3answers
27k 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 "...
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1answer
47 views

How to calculate John Templeton's market zones?

Does anyone know how John Templeton calculated his market zones, as seen on page 42 here: https://books.google.com/books?id=GBdGV9hxRPcC&pg=PA42&lpg=PA42&dq=john+templeton+stock+market+...
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6answers
56k views

Maker taker fees - can somebody explain in plain english?

I'm interested in learning about how trading works, but this is all very new to me so bear with me. (I'm just poking around at this point, obviously nowhere near ready to actually be trading) Some ...
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1answer
51 views

How does the listed equity options market influence other financial markets?

I'm reading Options Markets by Cox and Rubinstein, and there's a section entitled Effects on Other Financial Markets. The section is less than a page long, and while it presents some findings of ...
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1answer
333 views

Limit and Stop Market Buy Order , which will get activated first?

If we have a One cancels Other (OCO) order strategy , this is a strategy placing order, where you can place 2 orders, and when one of them gets filled, then the other will get canceled, and vice ...
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2answers
94 views

Buying International Stock

I bought a Canadian stock on the US OTC market. What I'm trying to understand is does the stock get impacted by the US or Canadian market. For example, if the Dow, S&P 500, NASDAQ are all ...
2
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1answer
973 views

Market price calculation algorithm?

So I am doing digital assets trading. Which is very interesting way to make some money (and at the very least cover the inflation rate). The trading itself with all different options is quite clear. ...
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4answers
7k views

Did an additional $32 billion necessarily get invested into Amazon.com stock on October 26th, 2017?

The share price went up about 6.9%, and the market cap is $466 billion. Does that mean that that much new money had to have been invested after hours? Would it otherwise be possible for the stock ...
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2answers
181 views

How do exchanges handle overflowing market orders

Say that I observe the following market (a simplified limit order book with only limit and market orders): Bid | Price | Ask | 100.75 | 10 | 100.50 | 40 20 | 99.40 | ...
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0answers
59 views

Time frames for NYSE response?

I have noticed that when NYSE gives a notice of non-compliance, they usually give about 30 days to the company to submit a response, plan, request extension etc. However, is there a time-frame for ...
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1answer
93 views

What is the rate of return for a security when there is no risk-free rate (CAPM)?

Let say I want to invest 1000€ in cryptocurrencies in order to get 2000€ In the famous CAPM, the relationship between risk and rates of returns in a security is described as follows: For a security ...
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2answers
185 views

Is the forex market large enough for copytrading?

Let's say I have a strategy where I take 2 trades at the same time every day. With 1:1 risk to reward ratio, and the strategy works 60% of the time. Let's say I share my picks every day with 10, 20, ...
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2answers
65 views

Market Hours and Valuations

As most stock exchanges operate a limited number of working hours, generally Monday to Friday during traditional office hours, but many businesses now operate 7 days a week, often 24/7, to what extent ...
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2answers
2k 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 ...
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2answers
101 views

Is there any other reasons beside market manipulation for a penny stock declined 20% within 5 minutes to closing despites nonnegative news? [closed]

Is there any other reasons beside market manipulation for a penny stock declined 20% within 5 minutes to closing despites nonnegative news? It declined so rapidly that I placed market order to sell ...
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1answer
68 views

When a Company was expected and then made a profit of X $ then that X$ increased it's share price. or those the Sellers and Buyers [duplicate]

When a Company was expected and then made a profit of X $ then That X$ increased it's share price. or those the Sellers and Buyers? Is it because Company A did a profit of X amount, so X is now ...
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3answers
153 views

Does the profit of a company directly affect its stock or indirectly by causing people to buy or sell?

From what I've read stocks basically only depend on what the market believes is the value of it. So if everyone decided to not sell a stock no matter what, does the profit of the company matter at ...
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3answers
10k views

What is the cause of sudden price spikes in the FOREX market?

I just started trading currencies on the FOREX market and notice that, sometimes out of the blue, there is a spike of massive PIPS in an instant. Who has the power to do that and why would anyone buy ...
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1answer
89 views

Resources for real time market intelligence

What are the best resources to obtain real time news that have a direct impact on the markets? If Im trying to research in the pre-market hours for the most up-to date information that will move ...
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5answers
5k views

Does Joel Greenblatt's “Magic Formula Investing” really beat the market?

Background Joel Greenblatt's book "The little blue book that beats the market" is based on the premise that he has developed a magic formula. I am heavily skeptical of anyone who claims that they ...
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3answers
657 views

How can I find the historical stock price for a specific stock on a specific date?

I am looking for an old stock price of a company that subsequenty has merged with another company. I am looking for the stock price of Union Electric (UEP) on Oct. 12, 1992.
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1answer
155 views

What are frontier markets? Is investing in them a good idea?

Recently I had a look through a number of funds that offered investment options to various geographic areas of the world. One such sector I had never heard of before: frontier markets. I know many ...
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4answers
22k views

How does a high share price benefit a company when it is raising funds?

A company about to raise money desires a higher share price, because that will permit them to issue less shares for the amount of money they need. If the share price drops, they would need to ...
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1answer
124 views

Market Relativity Theory?

Would it be fair to assume this: High market-cap securities will usually perform influenced to some extent by the market/Index fund they are currently traded on. For example; the Turkish Borsa ...
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1answer
119 views

Why do stock or commodity prices sometimes rise suddenly just before market close?

I often (not always but often) see that stock/commodity price rise sharply when market is approaching close. Shouldn't this be opposite (taking intraday profit)? What is the purpose of this strategy?