Questions tagged [stock-markets]

for questions that relate to stock markets. A stock market or equity market is a public entity for the trading of company shares.

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67
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3answers
14k views

How did this day trader lose so much?

I recently read this article about a day trader that lost $100,000: A trader started a GoFundMe page to pay back $100,000 to E-Trade after a disastrous short Please explain this, because I can not ...
11
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3answers
41k views

What does “more buyers than sellers” in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
217
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21answers
73k views

Why isn't everybody rich?

This question came up after reading this question (stock market long term risks), in which it is re-iterated (as it has been many times on this site), that investing in the stock market, especially an ...
11
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4answers
20k views

Can we estimate the impact of a large buy order on the share price?

What I am trying to understand is: If we know the number of shares a company trades and the current price of the share, can we estimate what volume of trade that is required to move the share price in ...
15
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5answers
2k views

Does it make sense to buy an index ETF (e.g. S&P 500) when the index is at an all-time high?

I have some money I intend to invest over the next 3-4 years. An important chunk of my portfolio would be invested in a stock market index ETF such as one representing the S&P 500. Unfortunately, ...
9
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10answers
6k views

Does the stock market create any sort of value?

Sorry if the below seems like a conspiracy theory. It probably is, but I probably don't understand something. (This has bugged me to no end as long as I can remember.) Okay, so here is what I ...
7
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4answers
5k views

How is stock price determined?

Is stock price determined only by the last trade that takes place? For example, if a stock I own is trading at $3.42, and I place a Sell Limit order for $0.00, will the stock price temporarily dip to ...
6
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2answers
684 views

What price is a limit buy and a limit sell order settled at?

A market has an existing limit buy order at $1.00. The market then receives a limit sell order at $0.95, what price is the transaction settled at?
11
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4answers
14k views

Can a trade happen “in between” the bid and ask price?

According to Investopedia: By looking for trades that take place in between the bid and ask, you can tell when a strong trend is about to come to an end. This is because these trades are often ...
1
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6answers
573 views

Why do stock prices rise when dividends increase?

It seems like stock prices rise when dividends increase unexpectedly [possible citation needed]. This doesn't seem intuitive to me, because if you think of stock as a claim of ownership on a company, ...
52
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4answers
98k views

How does a public company issue new shares without diluting the value held by existing shareholders?

When a public company issues new shares, the total number of shares traded in a secondary market goes up. Assuming there is no change in the fundamentals of the company and the profitability, I would ...
64
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6answers
8k views

At what point do index funds become unreliable?

Passively investing in exchange-traded funds that track some broad index is often recommended for private investors that don't have the time or expertise for active investment. In particular, index ...
5
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2answers
2k views

What happens to an options contract during an all stock acquisition?

Let's say for the sake of the question you're given the following scenario: Company BIG is trading at $10/share Company SML is trading at $40/share BIG reaches an agreement with SML for an all stock ...
3
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3answers
51k views

How can I trade in U.S stock exchange living in India by choosing the broker in U.S? [closed]

I would appreciate if you kindly suggest an answer for this question.Anything incomplete in this question should be assumed. And also please suggest which is the best brokerage firm/broker for this ...
22
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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 ...
7
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3answers
14k views

Is Stock Trading legal for a student on F-1 Visa in USA? [duplicate]

I'm an international student in US on F1 Visa. I just want to know if how legal is trading stocks on my visa status. I've found some posts on quora that say Trading is completely legal, but should not ...
4
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4answers
2k views

What are some good books for learning stocks, bonds, derivatives e.t.c for beginner with a math background?

Despite being STEM person, I always wanted to learn how stock & financial markets work. I always wanted to know how those stocks work, what are those bonds e.t.c. The only struggle I am having, ...
4
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4answers
24k views

Is there a mathematical formula to determine a stock's price at a given time?

I have been trying to find exact information on how stock prices are determined but still I haven't found any exact mathematical formulas how it happens. Wikipedia states: When prospective buyers ...
2
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1answer
3k views

ADR vs Ordinary shares

Why should someone prefer an ADR if he can get the ordinary share from the same stock exchange? Yes, ADRs often have multiple ORD bundled but they also cost more (fees for the company who manages ...
11
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3answers
5k views

What percent of a company are you buying when you purchase stock?

Lets say I buy a share of Apple stock. When you talk about stock, you say you are buying a small amount of the company. How small would 1 share of apple stock be at the moment you are answering the ...
6
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3answers
312 views

Why does the iShares EEM ETF have a higher expense ratio than similar ETFs like VWO?

Why is iShares able to charge more for EEM in comparison to VWO (a very similar ETF)? Investors/Traders are mostly institutional and in general, these entities have more insight (though simple ...
4
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1answer
3k views

Better way to calculate earning growth rate to have quick glance on company earning quality

I was wondering, what is a better way, to calculate earning growth rate, to have a quick glance on company earning quality? In ycharts, according to https://ycharts.com/glossary/terms/eps_growth , ...
4
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1answer
888 views

what is DEMAT equivalent in USA

I am new to USA. In India to trade in market one needs a Demat account and a trading account. but In USA, when I opened an account with a reputable brokerage there was no mention of an account similar ...
4
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3answers
269 views

question about short selling stocks

I'm trying to wrap my head around short selling. Online the explanations i found talk about borrowing a stock from your broker, selling it at a high price then waiting for the stock to drop in price ...
60
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5answers
16k views

Can a company block a specific person from buying its stock?

Say there is a very rich, very unpopular individual. This individual wishes to buy millions of dollars in stock in a company he or she thinks will be successful. The company, however, realizes that by ...
36
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4answers
9k views

What prevents stock prices from being artificially increased?

Let's say company FOO is trying to increase their $20 stock price. They agree to sell a share for $100. Of course, nobody buys. Now their buddy buys the share for $100. And maybe sells it back for ...
22
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9answers
5k views

Why do banks give small APR loans

I apologize if this has been asked before.... If you can reasonably expect to profit 6% or more from index funds and there are other ways to make a reasonably safe 6% on the stock market.... Why do ...
17
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1answer
3k views

What is the relationship between taxes and annual liquidation of the markets? [on hold]

I read this article on MarketWatch where they outline Elizabeth Warren's plan to tax the wealthy: 2% tax on every dollar above $50 million in assets 6% tax on households crossing the $1 billion ...
11
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5answers
2k views

When is the best time to put a large amount of assets in the stock market?

I'm interested in timing with regards to long-term index investing. Based on the advice of The Investor's Manifesto and others (John Bogle, William Bernstein) they stress how big a difference ...
11
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6answers
6k views

Should I continue to invest in an S&P 500 index fund?

I am saving to buy a house in 5-8 years. This year I invested $40,000 in a prominent ETF which tracks with the S&P 500. So far, I've lost $3,250, that is the stocks are now worth $36,750. I save $...
2
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2answers
2k views

What are some simple techniques used for Timing the Stock Market over the long term?

What are some simple techniques used for Timing the Stock Market over the long term to beat average market returns? By long term I mean 5 years and longer. It may include investing directly into ...
6
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4answers
474 views

Should I contribute to my employer's Employee Stock Program (ESPP), and if so how much and only during certain times of the year?

Although it is company-specific, what are your experiences when contributing to ESPP (Employee Stock Program)? More specifically, do you recommend contributing to ESPP in max? Or maybe it is only ...
15
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4answers
14k views

When would one actually want to use a market order instead of a limit order?

I'm new to investing. I'm looking into using an online discount broker to experiment with private trading. I'm in a position I don't mind losing money, but I don't want to lose more than I put in. ...
9
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1answer
4k views

Am I exposed to currency risk when I invest in shares of a foreign company that are listed domestically?

If a multinational firm based in country A is listed in both country A and country B, and I invest in this firm as a resident of country B through country B's stock exchange, either through something ...
8
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5answers
2k views

Stock market vs. baseball card trading analogy

I will use a baseball card trading analogy to present my question: The baseball card trading market, like any other market, follows the laws of supply and demand. The demand for baseball cards can be ...
4
votes
1answer
196 views

What shares are actually being sold in “ATM” format release?

I recently invested in $HMNY, a listed company and the owner of MoviePass. I invested it simply because that I love the MoviePass idea. Then, rumors says that the company wouldn't last long for the ...
3
votes
1answer
398 views

Can a company control its stock through contracts with stockholders?

A question yesterday, Can a company refuse to sell stock?, had asked about if a company could prevent sale of its stock to certain parties. The accepted answer was that, no, a company can't put ...
2
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1answer
2k views

Nasdaq vs Nasdaq Trade Reporting Facility

I was sorting through some market data today and was sorting between the three largest ECN/Exchange market centers that I have access to. The top three are: Nasdaq. Nasdaq Trade Reporting Facility. ...
0
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1answer
151 views

What is the 'opportunity cost' for delaying charitable donations, and when to grant them?

This question is kind of off topic, but this is the best sight I can find for it, so hopefully your humor me. I'm trying to figure out the optimal way to donate my charitable money, this question ...
12
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3answers
15k views

If you own 1% of a company's stock, are you entitled to 1% of its assets?

Say you own 1% of company ABC's shares. If all of a sudden there is no more demand in the stock market for company ABC's stocks, and its share price dropped down to $0, can you claim 1% of company ABC'...
5
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1answer
112 views

why some brokerage does not allow uncovered (cash secured) put via online order?

In past, I had brokerage accounts with Vanguard and I have option level approved for writing uncovered put( Level 4). I could place covered call orders via the website. But to place uncovered put ( ...
4
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3answers
2k views

Equity market inflow meaning

Recently a lot of finance articles have talked about there being $25B in inflows to US equity markets since the election...what does that mean? If for every buyer, there's a seller, doesn't that also ...
4
votes
1answer
417 views

Is SIPC a scam or does it protect investors from fraud?

I was trying to understand if SIPC is going to protect me. Despite the higher limit, even for small investors, it can be a problem if I consider https://www.pbs.org/newshour/nation/why-brokerage-...
3
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7answers
16k views

Can I place a stock limit order to buy above the current price? Can I place a stock limit order to sell below the current price?

In order to bypass the queue and get my orders filled before others, can I sell below the current price and buy above the current price in the stock market? I have found stocks with good liquidity ...
2
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2answers
2k views

Understanding a Trailing Limit if Touched Order

I"m trying to wrap my head around a Trailing Limit if Touched Order that is offered by Interactive Brokers. The order explanation is at Trailing Limit if Touched. What I'm trying to figure out is ...
2
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1answer
81 views

The value/price of an ETF

From my understanding an ETF has the advantages of a managed fund with the advantages of a stock. Advantages of a managed fund: a) An ETF is a collection of stocks that are packaged into a single ...
1
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2answers
648 views

When are funds available for a withdraw or to trade after a Futures /ES Emini contract? T+3 settlement

Stocks seem to have a 3 day wait (trade plus 3) T+3 for funds to be available to place another trade or withdraw cash without getting a "FED CALL". Options seem to have a 1 day wait. When are funds ...
1
vote
2answers
325 views

Why is Google's current nasdaq market cap almost twice the current share price * the No. of shares outstanding?

Shouldn't the market cap be exactly the current share price * the no. of shares outstanding? at the time of writing the share price is 537.37 and the no. of shares is 342.63 million, but the market ...
1
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1answer
709 views

How are market orders matched? [duplicate]

I'm trying to gain some insight into how orders on an exchange are matched to design a proof of concept matching system. Am I correct in assuming market orders are immediately executed against the ...
0
votes
1answer
81 views

How you make decision on a stock purchase after fundamental analysis? [closed]

I am new to investing and just started practising on a simulator. I wrote a program on Matlab and to analyse various fundamental aspects of a company. These are the aspects computed my program, A. ...