46

Consider times before the fast and efficient electronic communications. How would a trader from Chicago have an efficient access to an exchange in New York? So historically many major cities had an exchange, some (like NYSE, LSE, etc) more popular than others (e.g.: Have you heard about the San Francisco stock exchange?). Over time, as communications and ...


20

There are a variety of reasons why multiple stock exchanges came into existence: I would say that the primary reason for the existence of multiple stock exchanges is that they are businesses started by investors, whether they be actual traders or businessmen. For example, the NYSE was begun by a group of investors circa 1800 who met under a buttonwood tree ...


13

Yes, you will owe tax on the realized gain. But your newly-purchased shares will have a higher cost basis, potentially reducing the taxable gain of future sales (or increasing the deductible loss). Strategically doing this during a lower-income year to save money on taxes is called tax-gain harvesting. Depending on income and filing status, you could realize ...


10

Who is controlling the 50-days & 100-days chart to follow this pattern? Are they Fund Managers from various investment firms? No one "controls" these patterns - they are just reflective of market prices based on all trading activity. The analyst was making a prediction, not an assertion. They could likely be wrong. Is this Moving Average ...


8

Growing 300k to 1M in 5 years is a 27% annualized return which would be extraordinary over 5 years. That level of growth in passive investments would take a significant amount of risk, which would mean it would take a good amount of luck (since there would be a symmetric chance of having high losses as well). The safest way to grow 300k to 1M in 5 years with ...


8

From CQM, on a related question: Stock exchanges are most often times private companies that compete with other exchanges, so that also promotes the existence of many exchanges.


5

I agree fully with D Stanley's answer but wanted to add one more thing: "An analyst said that the S&P had reached its 50-day low and if it does not go higher, it will reach its 100-day low." In other words: if the price doesn't go up, it will go down. That is a profound as: if we don't win the game, we will lose.


5

A wash sale violation occurs if you acquire a 'substantially identical' security within 60 days (30 before or 30 after) of realizing a loss. It has nothing to do with realizing a gain. A wash sale applies to options and equities (not futures). It also applies to short positions as well. Not that it's applicable to most here but it's different for short ...


3

Is Market Cap the same as Valuation of a company? Market capitalization is the total value of the outstanding company shares. Essentially it is the market's valuation of the company, but it may differ from the "intrinsic value" of the company which is the valuation of its underlying assets, or financial valuation. The Market Cap of Ford is higher ...


2

In the US, options settle in one business day and equities settle in two. This isn't a problem if you have a margin account since the broker effectively lends you the money but without a borrow fee. The PDT rule was implemented after the internet bubble during which many people lost a lot of money day trading. Its purpose is to disincentivize people from ...


2

In order to do algorithmic trading one needs more than just access to a commercial app like Robinhood or Webull. Correct, while it may be possible (perhaps it violates their TOS) to algorithmically trade using an app-based broker, you will have a much easier time simply trading with a broker that provides a documented trading API. all the execution of ...


2

At least one broker has an API: Interactive Brokers Use our modern REST API to trade, monitor and manage your IBKR account.


2

KWEB declared a special dividend of $2.58 on 12/29/21. A special dividend is one that is not regularly scheduled so therefore you cannot screen or search for it. At best, if a company has a pattern of declaring special dividends, you might be able to anticipate the date but definitely not the amount. And while you did not ask this, there is no benefit to ...


2

Your numbers and the calculator in your link make no sense to me. If this is a cash transaction, you can only buy 1,416 shares with $100k. If this is the USA and you're utilizing Reg T 50% margin then you could buy 2,833 shares. Therefore, I have no clue how you can buy 3,333 shares with $100k. As for this concept of only risking 2% of your capital to the ...


2

No there isn't. There is an official registry of ticker symbols but everything else has no fixed registry. Words in the market come and go. So do abbreviations. My personal belief is that the abbreviations exist to tell who is on the inside and who is on the outside. I do not think that they exist to speed up communication, though they probably did when ...


2

Most preferred stocks in the US are issued at $25 and they are callable in 5 years. Preferred stocks are a hybrid of common stock and a bond. Because of the bond like nature (yield), they are affected by interest rates. As rates rise, preferred stocks drop and vice versa. Occasionally you might see a $25 preferred around $30 but that's more the exception ...


2

No one directly controls these moving averages. Price is a function of supply and demand. Moving averages are just arbitrary lines drawn on a chart. In trending up markets like 2021, they work very well. In corrections, they perform poorly (see late 2018 when the market was spooked by the [prospect of a trade war with China as well as the deep Covid ...


1

One way to help is to maximize the contributions into the IRA and 401(k). Assuming over age 50 and married. Each can contribute $27,000 to their 401(k), and also they might be able to put as must at $7,000 each into an IRA. That would be $68,000 in contributions. If they also received $5,000 each in company match they could take it to a total of $78,000 a ...


1

A buy stop order is an order where you buy if price moves above the current price. Here's an example. If XYZ is $102 and you want to buy it at $100 then just place a limit order. Conditional orders can be used for more complex orders, if your broker offers them.


1

A limit defines the most you want to pay for the stock. If there is a stock that's at $102 and you are willing to buy it for $100 or less, then a plain limit order will do that. But is sounds like you want to buy at $100 only if it goes below $100 and comes back up which is not common. For a buy, a "stop" defines a trigger price that the stock must ...


1

Counterparty risk Regarding your second sub-question (IMHO they're different enough to put them as separate questions), counterparty risk is a thing. For exchange traded securities you should be generally protected from that, but for OTC trades the insolvency of some party in the settlement (not necessarily the buyer/seller, it could be also some bank in the ...


1

An automatic trade (AT) is a normal on-exchange trade, created during regular trading by the matching engine from order(s) in the order book. An ordinary (O) trade is a normal off-exchange trade, agreed between the counterparties elsewhere and then reported to the exchange. I don't think a blank type has a standard meaning; you may need to check with your ...


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