Questions tagged [stock-markets]
The stock market is the community of individuals and corporations engaged in the buying and selling of shares of companies, called stocks, on the open market. Shares of stock are traded on a stock exchange and are tracked on indices such as the New York Stock Exchange and the Nasdaq.
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Legality of Providing Online Stock Advice, as a Shareholder
Is it illegal to provide stock tips on online forums, if you are also investing or have invested in the same stocks?
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Difference in market value between preferred and common stock?
I was reading about the difference between preferred and common stock, and I noticed that the market value of preferred stock doesn’t normally increase the way the value of common stock does. Why is ...
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Level 2: What do the different order types on LSE represent?
Here are a list of successful trades from a Level 2 order book. The column to the left of the time the trade went through is the "trade type". It is usually one of three things:
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Do market makers try to take out stop orders?
I have read many stock related forums over the years. One thing I have seen many people say is that they refuse to use stop orders because they don't want the market makers to "take out their stop". ...
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Does all stock have dividends? and what is the most intelligible definition and concept of dividend?
I keep reading about the stock dividend and cant figure out in my head how it works (Im dumb) can someone enlighten me about how can I fully understand its concept like suggesting some non complicated ...
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What is the significance of the valuation ratio EV/EBIDTA for investors?
I am new to stock market. I have a really basic doubt. Hope someone can solve it here
I recently came across a valuation ratio which is EV/EBIDTA.
Lets say there are two companies A and B. A wants to ...
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Why are shares not settled on the same day? [duplicate]
I know the settlement process but I am still confused about why trades/shares are settled on T+2nd day. Why the settlement is not done at the very moment we make the trade?
Any clarification on this ...
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Why is there need of open and close auction os stock exchange? [duplicate]
So why is stock exchanges like nyse or nasdaq using open and close auctions for open and closing price? Why not just use previous day's closing price as today's open price and start trading from there?...
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Is a public company immune from hostile takeovers if at least half of its issued shares are treasury shares?
I used to play Railroad Tycoon Deluxe (1993), the second video game in the groundbreaking Railroad Tycoon series. In the game, every player operates a railroad company (the default scenario is set in ...
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What is Derivative trading and why stock buying selling is not derivative
In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate.
By this definition stocks ...
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When can cash flow per share be more than earning per share? [closed]
I saw a few cases for stocks where the cash flow per share was more than earning per share of the stock. But couldn't understand the reason behind it
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Is there any other market like stock market [closed]
Is there any other market like stock market where people each other buy or sell something? Where sellers also buy and buyers also sell at same palace.
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Does the stock price drop if one of the largest shareholders of the company sells all their shares?
I don't know if it makes sense, I'm just wondering about its logic. For instance, Elon Musk has a huge amount of Tesla shares and right now he is selling his shares like a madman. Does the Tesla stock ...
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Why do promoters in public companies sell their shares and reduce their holdings?
Promoters in public companies can sell their shares and reduce their holdings. Why do they want to reduce their holdings?
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Why does IPO share price decrease?
Assume that I subscribe to an IPO at 1000rs and when it begins trading, its price decreases because IPO subscribers are selling the stock. Why do they subscribe if they're going to sell at a lower ...
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Does buying stock have time duration that automatically sell after the period end? If not, how are people losing to stock? [duplicate]
I'm totally new to the stock market. I don't understand how some people do not win with stocks.
If you decide to sell your stock whenever you want to, then why can't you wait for long period of time (...
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What is happening when a company wants to trade on a new stock exchange
I invested a year ago 5000 € in a company, listed on the Bulgarian (BG) stock exchange, because I really believed in their home automation products. Today it is doing well and after a capital increase,...
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What does the the future growth rate produced under the Efficient Market Hypothesis means?
Lets say I am using the dividend-discount model (DDM) to figure out the share price of a company and I also believe that markets are efficient, what does the long term/perpetual growth rate produced ...
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Finding optimal balance between unscheduled mortgage loan replayments and financial market investments
Imagine the following situation.
You have a mortgage loan, it has a quite low fixed interest but runs over a couple of decades
You have positive experiences over a couple of year with the financial ...
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Why have some stocks spiked then crashed, all within 30 days?
I'm referring to stocks that peaked like a mountain than crashed, but that weren't short squeezes. Is this Irrational Exuberance? If you know more examples, just edit this post please.
I know little ...
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To what extent do funds used to purchase stock transfer to the company who's shares are being purchased? [duplicate]
Obviously when buying shares from a public offering, those funds are basically going to the corporation making the offering; that's the whole point. So for this question we are discussing the ...
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Is there a way to know when institution is buying to the level of days instead of quarters?
https://www.nasdaq.com/market-activity/stocks/amd/institutional-holdings
NASDAQ lists institution ownership only to the resolution of quarters. For example, the dates are 06/30/2021 which refers to ...
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Why does the DJIA take a dip on the 19th of every month since May?
The Dow Jones Industrial Average has a brief downward spike on the 19th of every month since May 2021, except where the 19th falls on a weekend - so, May 19, June 18, July 19, August 19, September 20. ...
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Should I switch my investment from one mutual fund to other? What should be the mathematics behind it?
Take an example of two mutual funds: A and B.
For simplicity, following are assumptions:
Both funds always perform exactly same (same fall or same growth depending the direction of market).
Let us ...
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Sell Stop-Limit triggered on bid or ask?
If an option has a spread of BID $1 and ASK $1.50 and a sell stop-limit is placed with a STOP $1.20 and a LIMIT $1.15, is the stop triggered by the bid or the ask? That is, this order will not try to ...
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When does timing the market make sense
There is a saying that don't time the market and I think it's true, I've noticed I under perform when I try to time market over a long period. So when does it make sense to actually time the market?
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What are the reasons behind the index going higher and higher every year? [closed]
The following is the chart for NASDAQ from the year 1981 to 2021. The chart shows:
Index went so higher in 2000 to 5000 points
Bottomed in 2002 to 1250
Went up and bottomed in 2008 to 1400
The Market ...
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Why do share prices obtained from models often differ than the actual stock price?
Why do the share prices calculated from different models such as the dividend discount model or the free cash flow model or from the comparable analysis different than the actual stock price?
Like ...
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Why is S&P average PE ratio increasing since 1990?
PE ratio is one of the best tools to evaluate equities. A company that has positive earnings will have a positive PE ratio. But what is considered a reasonable PE ratio appears to be changing over ...
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What happens if the volume of two orders does not match?
I see the stock market as a list of orders which have a type (buy-limit, sell-limit, sell stop-loss, ...) a volume, and a price. Some order types have more parameters, but for simplicity I'd like to ...
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How is limit order handled right at market opening?
Consider the situation I want to buy shares of a company. Further, consider that the share price was at x when the market closed at the end of the day. Now during the market closure, I place a limit ...
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Short an option - random assignment?
I'm still really new to options but I'm trying to understand this concept of assignment.
Let’s say I’m short a call of Microsoft at a strike of 80 set to expire in a quarter. Microsoft surges for ...
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Can a company announce to give dividends (quarterly) and after two quarters decides not to give dividends?
Can a company announce to give dividends quarterly and after two quarters decides to stop giving dividends? Or it is obligated to do for the remaining two quarters?
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Last stock trades in after hours sessions of a single share that causes huge movement in price
When I sometimes scan down after hours price changes, I notice tickers where there is a single last transaction that has a huge effect on the AH price.
This is not an anomaly. I see it everyday on a ...
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Is there a way to tell what price a stock will be before the market opens?
I was reading about an Atlassian security vulnerability and was curious as to the effects on its stock price. Surprisingly, its stock price over the past 5 days was up 6.83%!? But I checked and Monday ...
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Understanding S&P 500 profit
It is my understanding that opening larger stock positions will, if the stock climbs, produce a larger profit.
For example, if I open a position of $200 on the S&P 500 and that position goes up by ...
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Which technical analysis indicators are considered leading stock market indicators?
Most technical analysis indicators are lagging indicators (will indicate a buy after the opportunity to buy has happened), there are also co-incident indicators that suggest a buy opportunity is ...
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What is the reason behind Fibonacci retracement in stock markets?
I read in technical analysis that stocks follow Fibonacci retracement.
But what’s is the crux reason behind this that golden ratio plays an important role in the stock market while buying and selling ...
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Starting investing in the UK or German stock market?
I am a German citizen but living and working in the UK.
Starting my new job came with a higher financial benefit and stock options. I have never invested before but also don't want to waste this ...
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How trustworthy are the strategies in “What works on Wall Street”?
I’m studying up on the book What Works on Wall Street for equity investments strategies.
While the book is very insightful, essentially it seems to be a system of filtering (say by market cap or price ...
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Bid/Ask volumes on stock markets
I recently got into buying some low volume stocks (mostly at NYSE) and noticed that sometimes when I buy/sell I get slightly different execution cost then when I hit the sell/buy button. I've figured ...
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What do you mean by Rebalancing?
In the equal distribution strategy section on this page, there is a mentioning of rebalancing. What do you mean by rebalancing? Does it happen at the beginning of the quarter or at the end of the ...
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If a broad long-term investment in the stock market is such a good deal, why don't banks do the "obvious" things?
There is a fundamental discrepancy or paradox that has been keeping me, and many others, away from the stock market. Before I explain it, let me mention some selected popular questions on this site in ...
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What are "Other Orders" in order routing reports?
I was reading Robinhood's SEC Rule 606(a) disclosure report (Robinhood Securities - Held NMS Stocks and Options Order Routing Public Report) for Q1 2020. For orders on S&P 500 stocks in January ...
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Why are derivatives markets the most fragile in times of correction?
I read an article about bitcoin derivatives which has been skyrocketing lately. The author wrote at the end of the article:
Derivatives markets are the most fragile in times of correction,
triggering ...
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Why would voting Class A Google stock (GOOGL) be selling for less than non-voting Class C stock (GOOG)?
Currently (2020 October 30), Class A Google stock (GOOGL), which has voting rights, is selling for less than its non-voting Class C stock (GOOG).
This seems backwards.
Why would this ever be the case?
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How is stock trading volume calculated?
I want to ask whether the volume is the total amount of shares traded?
And half the volume is the number of shares bought and the other half is the number of shares sold.
It doesn't seem to make sense ...
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Calculation of the stock price [duplicate]
Is the stock price calculated using the midpoint of the bid ask spread like how it is for crypto's or is it actually the the latest price is which bid and ask orders were matched?
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Why do stock exchanges NOT have a maximum share price?
I was reading this question over here Why do stock exchanges have minimum share price requirements?
And that got me thinking about why there isn't a maximum share price on stock exchanges?
Or are ...
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Execution price when the trading price jumps over the limit price for a previously submitted sell order
I placed a limit sell order with a price of $11 on a stock yesterday, when the stock was trading at $10. Today, the price jumped up to $12 right at the open. I was worried my order would be filled at $...
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