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5

From "Industry vs. Sector: What's the difference?" These two terms are sometimes reversed. But the general idea remains: one breaks the economy down into a few general segments while the other further categorizes those into more specific business activities. In the stock market, the generally accepted terminology cites a sector as a broad ...


3

The smallest set that I would go with would be the 11 SPDR sector ETFs: Basic Materials Consumer Cyclical Consumer Defensive Energy Financials Healthcare Industrials Real Estate Technology Telecommunication Utilities


2

Decades ago most transactions involved buying shares in lots of 100 shares. A high price could block some investors. Then things progressed. Many people own shares through their mutual fund or ETF. This can be through a taxable account or a retirement account. A large fund doesn't have any issues with high share prices. Now many brokers are allowing ...


1

A high share price discourages trading. A classic example of this is Warren Buffett who has never allowed a stock split of Berkshire Hathaway class A shares because he wants to attract long-term investors for that stock. He has allowed the B shares to split because he wants an affordable class of Berkshire shares available for smaller investors. In reality,...


6

A lot of these are readily googleable, but: What is the 'pit'? The area where open outcry traders stand. Sometimes these are set into the floor or stepped down, so the people at the edges can see each other over the heads of those in the middle. What's a 'market maker'? What's a 'floor trader'? Someone trading on the floor on their own account - the ...


24

Wall Street was filmed in the late 80's and although Electronic Communication Networks (ECN) existed at that time, their usage was not widespread as they were more the exception than the rule. At that time, the process for buying and selling stock was for a broker to call the exchange whereupon a runner brought the order to the brokerage firm's floor ...


1

I've found it surprisingly hard to find information on exactly how the execution price of an order is determined. This is my understanding, based on my own experience and research, of what happens when you place a limit sell order for $x: If, at the time the order is processed, the highest limit buy order in the order book is $y, and y >= x, your order ...


3

On many stock exchanges, a single-price auction (call auction) occurs at the open (and at the close). Every order executed at the open gets executed at the same price. On the NYSE, this auction is called an opening auction. On the NASDAQ, this auction is called the opening cross. If your order was filled at the open, it would be filled at the opening price.


0

"On June 2, 2014, to stem public outrage over claims of rigged markets, FINRA, the self-regulator and good buddy of Wall Street that conducts Wall Street’s private justice system, began to report publicly the three-week old trading data from the Dark Pools. But instead of providing daily reports with execution times for stock trades included, the data ...


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A limit order can only be filled at the specified limit price or better. A price gap occurs when a stock’s price makes a sharp move up or down with no trading occurring in between. Your limit order to sell was executed at the market's open somewhere in the vicinity of the higher opening price.


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