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
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
94 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
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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
105 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
214 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
1k 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 ...
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1answer
275 views

Does investing money in other currencies help pad losses in case of a stock market crash?

I was just reading this article. Does converting USD to say Euros help pad oneself against a potential US stock market crash? While I understand that a US crash would affect the rest of the world ...
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3answers
991 views

How is exchange rate calculated?

assume that there is a very new island-country called xland. they decide to name their currency xdollar and there is 1000 xdollars in circulation. the very first foreigner comes and wants to exchange ...
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1answer
2k views

Relationship between liquidity and an efficient market

If I have two securities A and B(they can be any combo of stock, etf, index, option ), then is it oversimplification to assume that if A has a more liquid market than B, then A is more efficiently ...
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1answer
1k views

Why government bonds fluctuate so much, even though interest rates don't change that often?

Why do government bond prices fluctuate on a daily basis on the bond market? I can understand the fluctuation of corporate bonds because they are tied to the credit worthiness of the company and ...
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1answer
2k views

Why wouldn't an option's last trade price be between the current bid and ask? [duplicate]

In the option table for SPY there is a column called 'Price' and a column called 'Bid' and a column called 'Ask'. If I wish to buy a call option, I need to pay a premium. Which column is the premium ...
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2answers
57k views

Will a company's stock price be affected when warrants are issued, or exercised?

A company has 500 million outstanding shares, and it issued 100 million warrants 10 years ago. Assume that none of the warrants has been exercised yet. If tomorrow all the holders exercised their ...
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1answer
294 views

Differences in conditions on shares to private vs. public shareholders?

The Wikipedia page about IPOs says this: A company selling shares is never required to repay the capital to its public investors. Does that mean that stocks bought on the stock market are somehow ...
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2answers
5k views

Market Making vs Market Taking (Quotes vs Orders)

This is in by no means a duplicate. I've found similar questions that didn't clarify. I'm simply wondering if there is a relationship between quote driven markets (market making) and order driven ...
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1answer
139 views

Can I invest in the USA or EU from an Asian 3rd-world country, over the Internet?

Is it possible to invest in markets in the USA or Europe from an Asian 3rd-world country over the Internet? Does the laws of the USA or EU allow people outside to do so?
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2answers
3k views

Stock buyer and seller information, and abuse of anonymous markets?

Is it possible to know who offered/offers and who bought stock? If not, what prevents a group of people to buy and sell stocks between them to "fake" interest in that stock and pump up the price?
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1answer
72 views

Market percentage growth per timeframe

Is there an indicator that shows price growth for a particular market item (stock, commodity, forex) per timeframe? I mean like price growth/decline in last 24 hours or other time period?
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1answer
103 views

How do markets “factor in” a future event?

I was reading an article in the The Economist about interest rates being set by the Bank of England. Regarding a potential future rise in interest rates set by the bank, the article said: Markets ...
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1answer
223 views

What is this kind of price graph called, and what is it useful for?

What is this kind of graph called? How do I interpret it? What is it useful for? I can't even tell what the axes mean.
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2answers
393 views

What investments are positively related to the housing market decline?

What investment sectors/areas generally go up when housing prices decline?
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3answers
23k views

How and why does the exchange rate of a currency change almost everyday?

How does the exchange rate of a currency change every day? Why does that happen? Please explain to me with a naive approach and avoiding financial jargon.
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2answers
558 views

As an investor what are side effects of Quantitative Easing in US and in EU?

If I understood well Quantitative Easing basically means a Central Bank prints out more money of its own currency. It seems simple to understand that it saves the country banks and the States by ...
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1answer
343 views

Does market maker buy when nobody else is buying and sell when nobody else is selling?

In this investopedia article , they say: Market Makers (MM) - These are the players who provide liquidity in the marketplace. This means that they are required to buy when nobody else is buying ...
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3answers
3k views

What does the term “match the market” mean?

What's the difference betweeng "matching" the market and "beating" the market?
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1answer
835 views

Do online brokers use market makers?

If I use an online broker such as Trade King or Scottrade to buy shares of some company, how do they buy the shares? Do they have to go through a market maker? Is there a notion of the broker ...
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1answer
111 views

What is a trade exchange and are they reputable or not?

I am trying to understand the concept of a marketplace for B2B cashless transactions. What are some examples (if any) where participation in such a marketplace can prove equitably beneficial to small ...
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2answers
3k views

Meaning of capital market

From Wikipedia A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which ...
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1answer
7k views

Quote driven and order driven financial markets

I know that an order driven market is a financial market where all of the orders of both buyers and sellers are displayed, detailing the price at which they are willing to buy or sell a security ...
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1answer
667 views

Stocks are traded on secondary markets?

From the book website for Economics Principles in Action by O'sullivan: Stocks are traded on secondary markets called stock exchanges, which in the United States includes the NYSE and Nasdaq. I ...
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2answers
165 views

Short-term robots and long-term investors in the stock market

Recently there are more and more robots that follow the short-term trends in stock markets and use it to bring immediate rewards to their owners. Since rewards don't come from thin air, this ...
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2answers
2k views

Discrepancy between market value and book value of a firm

I would like to know whether my reasoning is correct. Differences between market value and book value shouldn't exist in "a perfect world", since the value of a firm is whatever someone would be ...
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3answers
982 views

Efficient markets hypothesis and performance of IPO shares after lock-up period

It's noted here that the Linked In shares dropped 7% after restrictions on insiders from share sales expired. The layman explanation is that a greater supply of shares, and a desire amongst at least ...
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1answer
842 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 ...
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2answers
499 views

Mutual fund operations: How do mutual funds deploy incoming cash from investors in a fund?

I know there are many different answers for this depending on the strategy of the fund. I have heard that some funds invest cash from incoming fund purchases into money markets until they are ready ...
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1answer
2k views

Who are the various market participants in an initial public offering (IPO)?

Who are the market participants in an IPO? From my understanding: there are no short sellers, and no standardized options. The insiders may be selling but there are also restricted shares that can't ...
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1answer
491 views

Day Trading introductory books

I realize that day trading is considered to be highly risky, but the subject fascinates me and I would like to learn more about it as well as read about past experiences, both good and bad. Do you ...
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2answers
296 views

Is it possible to lower the price of a stock while buying?

Lets say the bid is 49.98 and the ask is 50.01, the midpoint is 50. Is it possible to intentionally place limit orders at 49.99, have them filled, then place limit order at 49.98, have them filled, ...
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2answers
176 views

Is a book from 2005 about fixed income securities obsolete, or still relevant?

This is intentionally a very broad question. How much (if at all) has the fixed income securities market changed from say 2005 to present day? The main reason I ask is because I am debating whether ...
3
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1answer
137 views

Is the quoted ask and bid the best ask and best bid?

I'm wondering, if you're on a brokerage site that offers "real-time" ask and bid quotes, are those ask and bid quotes you see flashed on the screen necessarily the best ask and the best bid available, ...
2
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2answers
351 views

Why is silver so volatile compared to the S&P 500?

As an example, silver took a 9.4% hit on 9/22/2011, which was a bad market day -- the Dow dropped over 3.5%. The conventional wisdom is that precious metals like silver are a hedge against a falling ...
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5answers
2k views

Why are the prices of some commodities (e.g. oil) more volatile than others?

Why are the prices of some commodities (e.g. oil) more volatile than others?
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5answers
12k views

Looking for a stock market simulation that's as close to the real thing as possible [closed]

The title says it all. I'm looking for a simulation stock market to play around with. One that is, ideally, as close to the real thing as possible. I've heard that Investopia is a pretty good ...
6
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1answer
234 views

Can mutual fund prices have opening gaps? Might my order to be filled at a higher price?

My broker offers limit orders on mutual funds. I was curious if mutual funds have open gaps like stocks do. If I want to buy a fund if it goes up to a certain price, would it be safe to set a limit to ...
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1answer
175 views

Guidance: New to stock market thing [duplicate]

Possible Duplicate: How do I get into investing in stocks? I am new to stock market, I had just opened up trading account, I will like to know a place from where I can read up the stuff and know ...
2
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2answers
137 views

Could someone explain this scenario about Google's involvement in the wireless spectrum auction?

Could someone explain this: What will that mean? If history is any guide, Page’s idealistic impulses could result in a vaster, more sprawling company. In 2008, Google participated in an FCC ...
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3answers
2k views

Discussing stock and stock index movement: clarifying percentage vs. points?

I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following: "NASDAQ was down X points today ...