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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1answer
144 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
131 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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3answers
30k 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
50 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
57k 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
53 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
528 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
96 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 ...
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1answer
1k 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
211 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
94 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
192 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
102 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
69 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
198 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
12k 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
743 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
161 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
24k 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
156 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
125 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?
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2answers
4k 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 ...
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13answers
51k views

Why would a company care about the price of its own shares in the stock market?

After a company has issues shares, why should it care if the value of the shares go up and down? Since the shares are now being traded among the public, if the value goes up or down, that is strictly ...
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2answers
3k views

Which is the most liquid market for trading?

I've traded spot forex and I found it really liquid (trades can be executed within a few seconds). However, in NSE (India) share market, it takes between minutes to days to sell the shares I've ...
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5answers
10k 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 ...
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3answers
9k views

“Inflation actually causes people not to spend”… could it be true? [closed]

Oasis Jnr claims that if inflation is high, consumers do not spend, because the high prices does not attract them: ...if inflation occurs then prices rise which will affect consumer spending ...
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4answers
318 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 ...
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2answers
340 views

Where does the stock go in a collapse?

During the crash at the end of 2008, pretty much everyone was selling their stock and the market tumbled approximately 50%. Who purchased the stock? Was it market makers or other people? I understand ...
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3answers
692 views

how much of foreign exchange (forex/fx) “deep liquidity” is really just unbacked leverage and what is the effect?

During the recent debacle of some high profile FX brokerages, I read some good articles that talked about FX brokers offering up to 1000:1 leverage ratios. Apparently it's pretty normal to find 200:1 -...
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1answer
96 views

Judge market efficiency from raw price action

Is it possible to judge just by tape reading and analyzing the price action, if a particular security in a particular market is efficient or not? I often read commentaries by experts that state that ...
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3answers
351 views

How profitable is selling your customer base? [closed]

I'm currently in the process (early process) of trying to get a product into the market. I am a college student with a heavy, background in computer hardware and software. As I began my research, I ...
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5answers
5k views

Why do stocks go up? Is it due to companies performing well, or what else? [duplicate]

I searched for this question but I didn't get any convincing answer. What everyone says is that if a company does well (I assume this means the company has good returns on its projects) then people ...
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1answer
141 views

What is network marketing? [closed]

Recently, I have been studying Robert Kiyosaki. He states that one of the best methods to prepare yourself in business is Network Marketing. What is this, and how can I learn it?
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3answers
2k views

How do car market price companies get their data?

When i was in a car auction i talked with a guy next to me and he was writing down all the information of the auction. He told me he worked for a close by dealership and those numbers were used to ...
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2answers
3k views

What does it mean to invest in potatoes?

There is an amusing thread on Reddit where people discuss what they would do with an unlimited supply of potatoes: http://www.reddit.com/r/AskReddit/comments/37yawp/...
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1answer
50 views

New Exchange Bid Ask and Price values [closed]

Imagine you are starting up new exchange / exchange simulator The orderbook is empty. What would be the current price, bid & ask ? How is that handled? Obviously it can't be ZERO.
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4answers
20k views

How do currency markets work? What factors are behind why currencies go up or down?

How do currency markets work? What factors are behind why currencies go up or down? What roles do governments, central banks, institutions, and traders have in the process?
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1answer
93 views

How can I invest in Asian and African Markets?

With a great deal of growth happening in Asian and African markets, I would like to know what are the options for investing in these areas. I'm UK based.
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4answers
7k views

What's the difference between Market Cap and NAV?

Here's my understanding: Market Captilisation is the market value of all of a company's shares. Then this sounds like the market value of a company's equity. NAV is Asset minus Liabilities. Wouldn't ...
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1answer
103 views

Is there any historical example that a market is shrinking down after competition? [closed]

I heard a story saying that the advertising market shrink down after Google entered. I doubt this strongly because Google is doing so well with its ads, though I never know what's the older days like. ...
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1answer
4k views

What is the difference between financial market and market

What is the difference between financial market and market? Are they the same?
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1answer
212 views

Where can I buy real gold and sell it later as shown in market?

I want to invest money in Gold. Where can I buy Gold and sell it later when the gold prices are high? (high in the market as shown in market NASDAQ/NYSE)
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3answers
989 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 ...