Questions tagged [stock-markets]

for questions that relate to stock markets. A stock market is a network of financial transactions, not a physical facility or discrete entity, for the trading of company stock.

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11
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7answers
9k views

What is the smartest thing to do in case of a stock market crash

What would be the best thing to do, if the stock market crashes? Should one invest in real estate, fonds, bonds or stocks? Or should one invest nothing at all? Edit: Since it seemingly was not ...
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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4answers
6k 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 ...
10
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7answers
5k views

What does it mean for a company to have its market cap larger than the market size?

Let's say for example, the refrigerator market is sized at 10 million dollars (hypothetical example), if the market cap of a company is, say, 20 million, is it worth investing in the stock? Can it ...
10
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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 ...
10
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3answers
3k views

Is it possible to take advantage of the current low market by buying financial instruments connected with oil/natural gas?

I was really hesitant to ask this question, but based on the reception of this other question Good investment options to take advantage of current low market I hope this one won't be off-topic. Also ...
10
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1answer
4k views

Why is this stock price inflated by 70x its real price?

The price for CSP1 (London Stock Exchange) has a short term price history that indicates the prices are roughly 7000% of what they are in reality. For example, on Jan 29th 2016 the price was reported ...
10
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3answers
12k views

What is the point of the stock market? What is it for, and why might someone want to trade or invest?

Sometimes you have to explain this to young people or people unfamiliar with the stock market. Why would a company want to be a stock company? Why would a person want to trade stocks? How does a ...
10
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2answers
28k views

What will happen when a bid price is higher than an ask price?

Let's say, there are three bid prices 100, 101, and 102, and three ask prices 101, 103, 104. What will happen, will ask:101 sell to bid:101 or bid:102, if the dealer is going to make the 101 to 101 ...
9
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2answers
4k views

Are stock prices likely drop off a little bit on a given friday afternoon?

My friend told me this but I can't find any information about it on the internet. His theory is that traders generally tend to close their positions on the Friday because they don't want to be ...
9
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4answers
6k views

What does net selling or buying of a stock mean?

What does it mean when some one says that today there was a lot of net selling or buying in a stock. What does it mean because for every selling there is also a buying going on then how can you ...
9
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5answers
884 views

Why are some long term investors so concerned about their entry price?

A long term investor is usually defined as someone who enters an investment for, say, 10, 20, 30 years or more. Generally they buy an investment to help meet a certain objective in their lives (e.g. ...
9
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1answer
6k views

Can one see the transactions in the stock market?

Is it possible to see the individual transactions in a certain exchange market (e.g. NYSE) for a certain stock (e.g. GOOG)?
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 ...
9
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4answers
669 views

Good investment options to take advantage of current low market

I have a sizeable amount of money to invest (about 80 thousand). With the market having dropped so sizeable I want to get into the stock market now to try to benefit from the eventual raise in the ...
9
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3answers
10k views

Why do volatility stocks/ETFs (TVIX, VXX, UVXY) trend down in the long-term?

I've noticed that stocks/ETFs that measure volatility (TVIX, VXX, UVXY, XVZ) are all trending down massively (eg VXX going from $7000/share on 3/09 and on 6/16 it is around $16/share) in the long-term ...
8
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9answers
7k views

What gives non-dividend stocks value to purchasers? [duplicate]

This is a question that has bothered me for awhile about the fundmental nature of the stock market as a whole, and no one has given a satisfying explanation. What is root cause of a stock having ...
8
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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 ...
8
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2answers
268 views

If I put in a limit order for the same price and size as someone else, which order goes through?

I put a limit buy order for 1000 shares at $1.26, and another investor has also put a limit buy order in for the same amount and volume. If someone sells 1000 shares at $1.26, which one of us gets the ...
8
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3answers
3k views

Can I open an investment account in the United States as a Green Card holder?

Can a green card holder open a Schwab investment account as a normal US citizen would, or most they open an International account? Funds to use would all be coming from a US bank and not overseas.
8
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1answer
3k views

How far in advance can insider sell their own company's stock?

Assuming this is not a new IPO, and no lock-ups, how far in advance do insiders have to declare selling their stock? From what I read online, they certainly can not immediately sell their stock the ...
8
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2answers
2k views

Is the money you get from shorting a stock free to use for going long on other stocks?

I shorted a particular stock which resulted in $10,000 being deposited into my Interactive Brokers account. I then put all of that $10,000 into VTI (total stock market index). Basically making the bet ...
8
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4answers
2k views

Ways to get individual securities from ETF's

Is there a easy way to automatically (ie. through an API or something, not through just reading a prospectus) get information about an ETF's underlying securities? I'd like to write an application ...
8
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2answers
1k views

How websites like Google have access to stock market data? [closed]

I was wondering, How websites such as Yahoo finance and Google can access market data? Do they buy API from somewhere?
8
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1answer
369 views

What are reasons a company would want to be listed on one exchange vs. another?

For example it seems technology stocks are typically listed on the NASDAQ while traditional industry may be listed on NYSE. Are there any advantages to one over the other or is it just "tradition"? ...
8
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3answers
23k 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 ...
7
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5answers
2k views

Are social/responsible stock funds pointless? [duplicate]

The ESG funds are becoming more and more popular. (ESG = Environmental, Social and Governance). But I am wondering if it makes sense for stock funds? If you buy a stock fund, the only consequence is ...
7
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3answers
3k views

Am I understanding buying options on stock correctly

I'm just wondering if I am understanding Stock options correctly. Basically if I am watching stock XYZ. It's currently at $10 per share which I believe is low and should raise to 20 within 1 month. ...
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 ...
7
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4answers
1k views

What happens to all of the options when they expire?

Most option traders don't want to actually buy or sell the underlying stock. They just use options as a trading vehicle perhaps making money on the time decay, on changes to volatility, etc. My ...
7
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4answers
1k views

What is quotational loss in stock market?

I'm reading Benjamin Graham's The Intelligent Investor currently, and there's a term "quotational loss." What does that mean? What we have just said indicates that there may no longer be such a ...
7
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5answers
2k views

As a total beginner, how do I begin to understand finance & stocks?

As the title states, I'm a complete beginner to finance. I haven't had a financial background, by the time I got my first proper job I struggled to understand my wage. I did study engineering and am ...
7
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2answers
580 views

How can I trade in “OTC” stocks?

Where do you buy "OTC" stocks? I may be naive but OTC means over the counter. I am confused as to where to purchase such stocks?
6
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7answers
4k views

Does an IPO mean a company is going public or is already public?

I know that an IPO means that a particular company, regardless of the country, is offering some quantity of their stocks to the public via the stock exchange. I also assume (but not sure) that if they ...
6
votes
3answers
16k views

If a stock has only buyers and no sellers how does its price go up?

I have been watching a stock for the past month. Nobody has been selling it, but every day the price has increased. If there are no sellers, it means there is no trading happening, so how can the ...
6
votes
3answers
810 views

Why does the stock market consistently overreact to the business cycle?

It's been shown time and time again (e.g. in Stocks for the Long Run) that the most profitable time to buy stocks is when sentiment is poor and that stocks usually recover very quickly at the end of a ...
6
votes
5answers
958 views

Where does the money go?

I've studied the derivatives market, and I've heard of a number of huge losses by firms; I've heard of individuals forewarning against investing in this market. I never hear about the big winners. ...
6
votes
3answers
647 views

Why do people claim that Stock Markets are broadly exponential in the long term?

I've always heard Stock investment being described in terms of getting X% return per-year in the long-running. But looking at the FTSE in the long-term doesn't suggest an exponential growth? See below,...
6
votes
2answers
438 views

What would be the effect of closing stock market trading for two months to Coronavirus?

We all hear about the massive fluctuations of the stock market due to fears and responses to the coronavirus pandemic. The market also has also triggered "circuit breakers" that temporarily halt ...
6
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3answers
412 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 ...
6
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1answer
173 views

Can Mutual Funds Invest In the Start Up Market?

This question refers to this article. I can't find Snapchat anywhere on the US stock exchanges as a public company, so I'm assuming that the Fidelity Blue Chip was holding this through the start up ...
6
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2answers
1k views

With respect to insider trading, what is considered “material information”?

I'm trying to understand what is considered "material" information held by an executive of a company. There is company information that an executive (say insider) will know that a public investor will ...
6
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2answers
751 views

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

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?
6
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3answers
7k views

What exactly is BATS Chi-X Europe?

I was told that BATS Chi-X Europe is not a stock exchange, that rather it is an equity market. The Wikipedia article states that it is an alternative to exchange traded equities and exchange-traded ...
6
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4answers
370 views

Will Future Recessions be Prevented by the Large Amount of Passive Index Funds and ETFs?

According to this article from CNBC: Passive investing, made up of funds tracking market barometers, has now taken over nearly half the stock market as more investors shun stock-pickers and flock ...
6
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4answers
591 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 ...
6
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1answer
259 views

What happens when a stock gets removed from the exchange I used to buy it?

I own stocks of Siemens Gamesa which I (foolishly) bought via the XETRA stock exchange instead of the more liquid Spanish Mercado Continuo. The stock has always received little attention and liquidity ...
6
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1answer
124 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 ( ...
6
votes
1answer
541 views

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 ...
5
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2answers
1k views

Can institutional, quant, or other professional traders “prey on” (make money from) retail investors?

I recently read in a well known forum: I worked for a large investment bank about 10 years ago, writing trading programs for quant traders who were market makers. The quants called guys like ...

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