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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How do market makers profit from the bid-ask spread when bids are almost always lower than asks?
I am familiar with how currency exchange booths at airports make some of their money: from the bid-ask spread. For example, they will say: "you can sell us 1 USD for 1.32 CAD, and you can buy 1 USD ...
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Is S&P500 "irrationaly exuberant" or what is the right way to rationally judge the market state at some point in time?
From the book "The Intelligent Investor" by Benjamin Graham:
“The pendulum swings from irrational exuberance to unjustifiable pessimism.”
Looking at the S&P500 index currently nearing 3,000 ...
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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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Where people invest during stock market crash (USA Q4 2018 crash)? [closed]
Question: Where people invest during stock market crash (USA Q4 2018 crash)?
Assumptions:
When viewing S&P500 as a proxy to the USA market we can observe that it loses market cap (and price ...
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How do I diversify with little capital but picking only those companies I want?
Is it possible to achieve a high degree of diversification with relatively little capital but still be able to determine exactly in which companies one invests and in which one not? So is there a way ...
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How to sell unwanted options
I bought some call options earlier this year that have dropped to zero value. I've tried several times to sell them at market, but I have seen zero buyers.
I would like to sell them or have them ...
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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 ...
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Calculating stock prices falls and rises
Let's say I close my investment of $25 in a stock which is currently down from 313 to 123, I calculate my loss with this equation:
( ( Close - Open ) / Open ) * 100 = %change
Which would leave me with ...
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Basic Stock Questions
Hi I'm new to stock trading and have a few questions:
If I put in $100 into a stock, the stock rises and I take out $120, do I only pay taxes on that extra $20?
If I put in $100 into a stock, can I ...
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Is day trading still profitable in 2020?
I'm interested in day trading and want to start educating myself, but I'm a bit concerned regarding AI and automated trading where humans trade vs. computer programs and have no chance at all - I'm ...
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Do knock-out call options become worthless when the underlying stock is split?
Suppose you own KO call options based on a stock. The knock-out level would be at $90, the stock currently is at $100. But then the stock is split 1:2, so suddenly the stock is worth $50.
Do the ...
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Is Nasdaq stock an ETF?
Newb here.
Is https://robinhood.com/stocks/NDAQ an ETF, aka if I buy this, is it a composite index (like QTEC)?
Meaning if I buy NDAQ am I really buying a composite index, or am I just investing in ...
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Are discount brokers freely permitted to deny client orders for any exchange-listed stock or ETF?
If a "no advice" (order execution only) discount broker is a member of a major stock exchange, does that typically obligate the broker to accept client orders for all stocks, ETFs, etc. listed on the ...
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What happens on the NYSE during an IPO such that the first trade may be hours after the opening bell?
So, I understand that today's Spotify IPO isn't a traditional IPO. But I think my question extends beyond this.
At about 12:45pm today, shares of Spotify finally started trading on NYSE. Opening bell ...
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Stock valuation - Volkswagen
Can someone explain to me why the stock price of Volkswagen dropped when the pollution scandal was publically known?
I know they have to pay massive fines which for example takes away money from ...
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Will a stop-limit-on-quote execute in extended trading?
As an example, if I have this order: Buy 500 Shares of XYZ at Limit Price of $5.00 and Stop Price of $4.50. Duration of this order is Good until Cancelled.
Will that order execute during extended ...
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About Sell Stop loss order [closed]
I put in an entry order of 11.27$, a limit order to sell at 12.49$ and stop loss order of 10.66$ . My trade was executed and two days later, the price dropped to 3.49$ !!
What happened to my stock? ...
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How can Volume be greater than Open Interest?
Notice how at the strike price of 30 and 35 for Puts, you have volume at 22 and 7, but Open Interest at 0.
If volume is the number of trades made a day, and Open Interest is the number of contracts ...
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Bollinger Bands and TRENDING market
I have a small question regarding Bollinger Bands: If upper and bollinger bands either converge (both bands are getting more and more close together) or diverge (both bands are getting more and more ...
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Pattern Day Trade - $25,000 Margin Account Rule
I am kind of new to day trading stocks. I was just a bit confused regarding the pattern day trade rule which prevents people with under $25,000 to exceed 3 day trades per week.
Does the $25,000 have ...
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What is meant by a market that is technically strong
What is meant by a technically strong stock or a technically strong market?
I understand what a fundamentally strong stock is, but what is a technically strong stock/ market? Does it mean a stock ...
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Why does NASDAQ consider the Steel/Iron Ore industry part of the industrials sector and not the materials sector?
From my understanding, the materials stock market sector consists of companies providing raw materials to other companies, such as oil, lumber, metals, etc. and the industrials stock market sector ...
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Dividends and Number of shares owned
For stocks in companies that pay dividends, is this just for holding any share, or is the dividend paid per share? For example, a dividend of $10: is that $10 for holding 200 shares of stock or $10 ...
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Why is a rise in price associated with buying and a decline in price associated with selling?
This confuses me because people say “everyone is selling off” implying there is more sellers than buyers. It’s the exact opposite when the price goes up. But for an order to go through, there needs ...
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What happens when the 'offer price' drops to zero?
I am aware of the basic idea of the 'offer price qty'. It's basically the number of shares available for you to buy at some instance. But what happens when this quantity drops to zero (i.e. there are ...
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A stock needs to have a combination of a buyer and a seller in order to exchange hands. Then how is the supply and demand created?
I have no background in the stock market and I have just started to learn about it. Please excuse me if this is a stupid question.
What I know so far is that if I have to sell a share, there has to ...
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Does the concept of non-outstanding shares exist?
Is there such a thing as "non-outstanding shares"? I ask because I'm trying to understand the relationship between market capitalization, outstanding shares, stock buybacks and ownership in a ...
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Risk of selling stock cash secured puts and covered calls
I'm trying to determine what the potential downside is for selling call and put options, aside from the obvious loss of money if the stock moves past the strike price of the call or put sold.
Right ...
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Reverse Stock Split with 1 share
I would like some clarification on why my portfolio still shows that I own 1 share of CYTX at an average cost of $3.90, when in reality, I purchased 1 share for $0.39 several months ago? From what I'...
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"Convertible -debt/note/bond/debentures" which of these are the same or different?
i came across "convertible debentures" when reading a file for a public company. i didn't know what this term meant, so i went to look it up..
but then became more confused. there are sites that say ...
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Futures and Bonds Pricing and Contract Terms
What do the listed futures price, say, here, actually mean? I am confused because my understanding of futures is that any two people can enter into a contract at any price with any delivery date. ...
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What is a call spread and how does it work?
First let me apologize in advance, I am an amateur in this world at best, and my terminology is a little weak. However this phrase "buy/sell a call spread" seemed pretty light on ...
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How to retroactively calculate what the return on an investment in an index fund with monthly contributions would have been
If I had invested $1000 on 1/1/2000 in the S&P500 and each month I invested a further $1000 in to the same fund for 10 years, how would I calculate the return on investment I have made, accounting ...
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On what time scales are stock support and resistance levels meaningful?
I recently read about support and resistance levels. The basic idea is that if it is the case that a stock usually rises when its value descends close to a certain number, we call that a support ...
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Tickers that cannot be electronically traded
I have a brokerage account with Questrade that I've been using to trade on American and Canadian markets.
Recently, a new ticker ACDVF was established for Air Canada in the U.S.
I tried to buy this ...
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How market orders are filled?
When we look at the stock price S of a stock, then if I am correct S is equal to the average between the highest bid and the lowest ask for this stock. Hence since the highest bid is lower than the ...
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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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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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Understanding the spectrum of "SEC regimes"
I heard somewhere on a market commentary forum that the current SEC regime is "activist." I paused and tried to figure out what that meant, but I couldn't -- at least to a meaningful degree. ...
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Do the people that sold naked calls that expire in the money have to settle up at the closing price on the day of expiry?
If a naked call expires Friday does the issuer of that call have to pay the 4:00 Friday price for the 100 shares or can they wait for a better price after hours, or the next day before settling?
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Why doesn't every successful trade appear on the Level 2 order book?
I have noticed that not every successful trade appears on the Level 2 order book. Particularly for illiquid shares. Take the example below, where the book is filled with Market Makers. A lot of the ...
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Do most future traders really believe that stock prices will be lower in the next two years?
I am looking at the following website that shows the stock futures chain
https://www.cmegroup.com/trading/equity-index/us-index/sandp-500.html
The way I read this, the further out you go, the lower ...
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Quality of price when trading less than 100 shares
I am thinking about diversifying my portfolio by adding 10 new positions. Due to limited funds, I am planning on buying less than 100 shares each time. It is my understanding that since I am buying ...
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Where are digital stocks stored?
If I buy Bitcoins, I can "physically" store the bitcoin on my computer and back it up as much as I want. AFAIK, stocks don't have that option. So where are they stored?
For example, if I buy stocks ...
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Why an ETF that tracks China A stocks is NOT moving as the underlying index moves
For ASHR (https://www.etf.com/ASHR#tradability) , which tracks an index of the 300 largest and most liquid Chinese shares traded on the Shanghai and Shenzhen exchanges, it doesn't move as the index ...
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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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How to decide where to invest home equity?
Let's say I bought my home several years ago and now have (for example) $100k equity available if I refinance.
Now I can take that $100k* and invest it in the stock market. Or I could take the 100k ...
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Does a public company need a majority approval of share holders before it can do a secondary offering?
Before a public company can do a secondary offering (issue more shares) do the majority of current share holders need to approve it? or can they issue more shares without having the current ...
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What is the market capitalization when there are multiple stock symbols?
When I searched for the Canadian Tire stock symbol, I got back the following results:
Ticker Market Cap
CTC.TO 8.9B
CTC-A.TO 8.9B
CDNAF 6.8B
CDNTF -
YAAA.MU -
YAAA.SG -
Is the ...
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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 ...
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