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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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8
votes
3answers
2k 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
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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3answers
8k 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 ...
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
votes
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
votes
4answers
882 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
votes
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 ...
7
votes
4answers
1k 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 ...
7
votes
1answer
309 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"? ...
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 ...
7
votes
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
votes
2answers
536 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?
7
votes
3answers
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 ...
6
votes
3answers
12k 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
9answers
6k 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 ...
6
votes
3answers
782 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
953 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
5answers
751 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. ...
6
votes
3answers
314 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
votes
1answer
169 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
votes
2answers
981 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
votes
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?
6
votes
4answers
281 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
votes
4answers
475 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
votes
1answer
113 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
491 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
votes
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 ...
5
votes
2answers
750 views

Harmony Gold Mining Company is listed on the NYSE and JSE at different prices?

If a company is listed on two separate exchanges the prices are kept similar by arbitrage opportunities. However Harmony Gold trades at $0.953 on NYSE and 1616 south african rand on JSE. The exchange ...
5
votes
4answers
298 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 ...
5
votes
1answer
3k views

Is it illegal to buy stocks at a low price during a flash crash using a low GTC order?

We've seen several flash crashes in the past few years, and I suspect algorithms are some of what's behind these (see this as an example). In a short period of time, an exchange will suddenly see ...
5
votes
3answers
6k 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 ...
5
votes
3answers
205 views

Is the profitability of investing in indexed funds properly reflected by the change of value in the index?

I'm reading this article, which makes the following claim: In 1974 the Dow closed at 616*. At the end of 2014 it was 17,823*. Over that 40 year period (January 1975 – January 2015) the S&P 500 (...
5
votes
3answers
550 views

Benjamin Graham: Minimum Size of the company

In the book "Intelligent Investor", Graham recommends a minimum annual sales figure of 100 Million $ as one of the criteria. How do we adjust this figure for Inflation and a country other than the ...
5
votes
2answers
235 views

Stock markets and dividends: When exactly does one need to own shares to be entitled to the dividend? [duplicate]

I have a more or less formal question regarding dividends. If a company pays an (annual) dividend of - say - 5%, this is voted for/against on the annual general meeting. Now, the dividend is paid ...
5
votes
2answers
236 views

Why would a public company not initiate secondary stock offerings more often?

What prevents a company from doing secondary public stock offerings on regular basis? What are the cons of initiating secondary offerings other than the negative impact on stock price (at least in ...
5
votes
1answer
115 views

Is there no overlap of ticker symbol even if old company was unlisted or bankrupt?

I want to know if ticker symbols are always unique in all time period. Or is it unique only in currently listed companies?
5
votes
1answer
202 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 ...
5
votes
1answer
66 views

How is an ETF's NAV determined?

I am a little confused with the concept of an ETF. Let’s take EDEN as an example. It is an ETF that aims to track the performance of entities based in Denmark. It would appear that EDEN’s NAV would be ...
5
votes
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 ...
4
votes
3answers
6k views

2008-2009 Stock Market Crash — what caused the second drop?

During the 2008 - 2009 stock market "crash", the bottom came in early March, not in the heavy liquidity and other banking crises in the fall. Do you remember what the history of this is, what ...
4
votes
3answers
675 views

Dad (mid 50s) wants me to help him invest ~500k?

My dad is in his mid 50s right now, and he has ~500,000 in his savings account. He has approximately 1 million in his 401k. He feels bad that he missed out on the rally of the past 9 years and wants ...
4
votes
5answers
768 views

Is it possible that any security listed in one country but trades in another country

For example a company which listed in Europe but trades in US market or vice versa. Could you please provide few examples of such securities. I found that depository receipts are foreign company's ...
4
votes
2answers
409 views

What are some signs that the stock market might crash? [closed]

I have about one year of experience as an investor and my goal is to aggressively grow my portfolio over the next 40 years for retirement. I have had good success achieving my goal over the last year ...
4
votes
2answers
703 views

Calculating returns on a stock: different ways?

I am comparing two ways of calculating the total return on one stock over time and I would like to know if they both make sense. When would you use one over the other and do they have specific names? ...
4
votes
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 ...
4
votes
2answers
289 views

Can you buy an option and immediately exercise it? Options delays questions

Assuming American Options Can you buy a stock option and immediately exercise it - or are you only formally given control of the option at the end of the trading day? Would you be able to sell it ...
4
votes
4answers
191 views

What fundamental value do Options give the economy?

I had been wondering lately what the economic value that financial Options (Calls, Puts, American, Bermudan, etc) give to the economy is. In essence, what good do they give us, vs. simply trading the ...
4
votes
1answer
418 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-...