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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13
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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 ...
3
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3answers
819 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.
2
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1answer
167 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
25k 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 ...
-3
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1answer
177 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 ...
2
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1answer
135 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?
2
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2answers
7k 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
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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 ...
13
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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 ...
3
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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 ...
5
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4answers
321 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 ...
2
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2answers
348 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 ...
2
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3answers
770 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 -...
0
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1answer
100 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 ...
2
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3answers
377 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 ...
6
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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 ...
1
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1answer
147 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?
2
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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 ...
11
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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/...
1
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1answer
51 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.
15
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4answers
21k 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
96 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
114 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
227 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 ...
3
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1answer
277 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 ...
12
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3answers
1k 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 ...
5
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1answer
2k 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 ...
6
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2answers
69k 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 ...
3
votes
1answer
295 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 ...
7
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2answers
6k 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 ...
0
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1answer
140 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?
4
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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?
2
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1answer
78 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?
1
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1answer
104 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 ...
2
votes
1answer
224 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.
9
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2answers
394 views

What investments are positively related to the housing market decline?

What investment sectors/areas generally go up when housing prices decline?
11
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3answers
24k 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.
3
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2answers
560 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
349 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?
4
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1answer
931 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 ...
1
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1answer
112 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 ...
4
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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 ...
3
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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 ...
1
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1answer
671 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 ...