Questions tagged [stock-market]

Markets in which ownership stakes of firms (e.g. stocks/shares) can be traded.

Filter by
Sorted by
Tagged with
1
vote
0answers
10 views

Why does borrowability of shares inversely correlate with probability of assignment or exercise?

I transcribe 5:26 of this video. I don't know that YouTuber's credentials. So looking back here, what could possibly cause you to get assigned early? If we look right here, AMD shares are listed as ...
4
votes
2answers
931 views

What is the mechanism that triggers a stock price change?

When discussing with my son basic economics (how the price is driven by demand, among others), I came to wonder which exact mechanism triggers a price change in a stock exchange. In everyday life, ...
0
votes
1answer
19 views

Books and resources on how policies/regulations are made on exchanges like NYSE, NASDAQ, LSE, etc?

Different stock exchanges (for example, NYSE vs KRX) have similar but different regulations overall. Each exchange has different concerns and each exchange has a different approach to handle problems ...
1
vote
1answer
29 views

Efficient market hypothesis and different performances between countries

When comparing historical gains (I used the "adjusted close" data on yahoo) of major indices in different countries it is clear that the US outperformed most of these by quite a bit (see for ...
0
votes
1answer
33 views

Why is a “reverse IPO” named as such?

Recently, there has been a lot of hype over a group of companies called "special purpose acquisition companies" (SPACs). SPACs are "shell companies" or "blank check companies&...
1
vote
1answer
34 views

If you short an ETF, who pays its MER?

I don't understand how u/Cruian's comment answers the original questions in that Reddit post. The expense ratios are taken from the fund's holdings directly, you never see the change in your account ...
1
vote
1answer
44 views

Event Study vs. Difference-in-Differences

I am trying to perform Event Study methodology to analyse impact of group of events on group of stocks from certain sector. I noticed that I am getting surprisingly lot of positive results (very low p-...
1
vote
2answers
32 views

What are the pros and cons of a “long stock, short call” position compared to a “short put”?

The profit-loss diagram for the "long stock, short call" position and the "short put" position are almost exactly the same, except that for the former, you may be able to profit ...
1
vote
1answer
102 views

What happens to the stock market if no one wants to buy?

When the stock market crashes, if everyone wants to sell, who will buy? Is it possible that no one could sell his shares because no one wants to buy them? If so, what would happen? Would share price ...
1
vote
1answer
39 views

Why isn't the NYSE Composite mentioned as much as the Dow, S&P 500, or NASDAQ?

I happened upon this question at r/investing upon which this post is predicated, but I don't understand the answers there. I don't quote the OP verbatim for I emend his/her punctuation. The Dow [DJI], ...
0
votes
3answers
38 views

What's a more accurate term than 'share price' that doesn't depend on (reverse) stock splits?

Purport that retail investors desire to invest in AAPL or TSLA (both have been reported to split their stock soon), because they think their "future share price" (after the stock split) will ...
0
votes
1answer
31 views

How is the cost of equity for a specific stock calculated using the Fama-French 5 factor model?

The Fama-French 5 factor model is as follows: $$R_a = R_f + \beta_m \left( R_m - R_f\right) + \beta_s\text{SMB} + \beta_v\text{HML} + \beta_p\text{RMW} + + \beta_i\text{CMA}$$ It is quite easy to find ...
1
vote
1answer
103 views

How much real value has the stock market lost since Feb. 2020?

In this question I'm using the Vanguard Total Stock Market Index Fund(VTSMIF), which for my purposes I find to be a sufficient indicator of the US market as a whole. (Please explain why this isn't an ...
1
vote
1answer
37 views

Has anyone peer-review researched investors buying another, but similarly spelled, ticker?

GLDD - Believing Robinhood users are dumb is profitable... : wallstreetbets Academics need to research the correlation between performing tickers and their closely related (only in name) cousins. ...
0
votes
2answers
38 views

Book Value per Common Share

Does book value per common share include intangible assets? As far as I know, its formula is common stockholder's equity divided by shares outstanding? If shareholder's equity includes intangible ...
0
votes
1answer
57 views

How does the Fed's stimulus push stocks markets higher?

I read that the Fed’s stimulus last March has contributed to a spectacular rally in stock markets. And indeed S&P500 has increased a lot since March. But how does the mechanism work? How does the ...
0
votes
1answer
20 views

Why is a company allowed to change the number of shares it’s divided into after its IPO?

I read that even after an IPO, a company can change the number of shares that it’s divided into based on a board vote. What’s to prevent them from arbitrarily increasing the number of shares to raise ...
0
votes
3answers
51 views

How exactly does a stock price gap overnight?

I read Bob Baerker's answer. I'll exemplify with KODK. The NYSE has Extended Hours: 4:00 pm to 8:00 p.m. ET Opening Session: 4:00 a.m. to 9:30 a.m. ET Pretend that on July 28 2020, KODK last ...
0
votes
1answer
20 views

Why aren't lengthier expirations offered, especially when a competitor offers it?

My grandparents in Canada screenshot from their Questrade IQ Edge. Why wouldn't the options exchange sell options with lengthier expiration dates for Vanguard's Russell 2000 ETF, when they do for ...
0
votes
1answer
49 views

In March 2020, why did stock indices of Asian countries that curbed COVID19 still plummet?

By March 1 2020, both HK and Japan restrained and quelled COVID19, compared to France, USA, UK. Don't hesitate to discuss other countries unscathed by COVID-19.
1
vote
1answer
46 views

What's the economic argument (if any) for taxing dividends as ordinary income?

My (limited) understanding is that dividends and share repurchases are economically very similar: while share repurchases are slightly less direct, both transactions are effectively ways for publicly ...
0
votes
0answers
23 views

Does the stock market usually overshoot both ways?

I've loosened Lee Spelman's contention from "always" to "usually". I pasted her biography to prove she appears qualified. Lee Spelman, managing director, is the Head of U.S. ...
1
vote
0answers
50 views

Does the Efficient Market Hypothesis explain why Cheaspeake Energy skyrocketed from \$25.95 to \$77.5 before tumbling to \$21 over 3 days?

In this question's title, I reported the daily highs for CHK for June 5th 2020 ($25.95), 8th, and 9th. CHK had been rumoured to file for Ch 11 bankruptcy since March 2020(?), and it did on June 28. ...
-2
votes
1answer
44 views

What does Eugene Fama mean “variance of price changes over multiple days should be less than the multiple of the variance over a day”?

I transcribed A Symposium with 2013 American Nobel Laureates at Embassy of Sweden, Washington - YouTube starting at 54:45. Martin Karplus (Chemistry)  challenges Eugene Fama. Look at how the stock ...
0
votes
1answer
23 views

Why is the Stock Market Cap / GDP ratio on FRED well out of date?

FRED posts the Buffet Ratio here: https://fred.stlouisfed.org/series/DDDM01USA156NWDB But it ends in 2017, anyone know why?
1
vote
2answers
35 views

CAPM and beta for individual stocks

Why do we just assume that the beta is constant for a stock? Could it not very well be the case that the beta is 1.2 in a bear (baisse) market and 0.8 in a bull (hausse) market for an individual stock,...
-1
votes
1answer
34 views

Why are US equity prices and inflation inversely correlated?

Many comments on this r/stockmarket Reddit thread hypothesize an inverse correlation between USD value and US equity prices. Why would this be true in theory? It's not true in reality, right? Has the ...
2
votes
1answer
39 views

Why is it relevant for a company to use dividends to incentivize shareholders to maintain ownership of the company's stocks?

I was reading the definition of "Bottom Line" on Investopedia and one of the reasons companies increase their bottom-line is to issue payments (dividends) to stockholders as an incentive to ...
0
votes
0answers
23 views

Why does Canada allow merely 9% spread between the trailing stop price and its limit offset?

I'm assuming that "limit offset" just means "limit price". Help & How-to | Questrade There is no maximum allowable spread between the limit offset and the trailing stop price ...
-2
votes
1answer
28 views

How does the stock market's allocating resources differ from price signalling? [closed]

What does Erian mean that "You allocate uses of funds with sources of funds. And if you price that well, you get an efficient outcome."? Outcome to what? What does he mean the stock markets ...
-1
votes
2answers
66 views

Macroeconomics differences of 2008 financial crisis and 2020 economic crisis

How is 2020 financial crisis different from 2008 financial crisis? For example, why have stock market indices (e.g. S&P500, NASDAQ-100) recovered so quickly (about 3 months instead of longer than ...
-2
votes
1answer
49 views

What's the next largest company after Facebook of which the majority of the votes is controlled by a single person? [closed]

Mark Zuckerberg controls 57.9% of all votes among Facebook shareholders [1]. Currently, Facebook's market capitalization is more than $650B. It has been among the global top 10 public corporations by ...
-2
votes
1answer
152 views

In Trailing Stop-Limit Orders, what does the Limit Offset mean?

I don't understand the "limit offsets" below that I colored red. Why do you need them? In Questrade's example, if the stock rises to your stop price of \$21, then you will be buying at \$21. So why ...
-2
votes
1answer
57 views

In 2020 depression and pandemic, how do retail traders still have money to rally up US stock market? [closed]

Starting from June 3 2020, US stock market has soared back to its 2020 high. Many stocks sky-rocketed even though their fundamentals didn't improve like airline, cruise ship, oil stocks. "Car renter ...
3
votes
1answer
61 views

Can stock exchange workers go on strike?

Today, trade in the stock exchange of my country Israel (TASE) was cancelled due to a union dispute. So clearly, in Israel the answer to the question in the title is "yes". I can't say this comes as a ...
0
votes
0answers
11 views

How can I tell who are major investors in an asset management group and their associated funds?

I am trying to determine which individuals/organizations are the largest investors in Netflix, but when I look at the list of top shareholders, they are all investment management groups. Investment ...
0
votes
1answer
73 views

Why can per share earnings growth only keep up with GDP growth, if no new shares are issued?

I transcribe Ben Felix's speech (BSc Mechanical Engineering (Northeastern University), MBA Finance (Carleton University), CFA, CFP, CIM) starting from 8:33. I just screen shot his animation, rather ...
0
votes
1answer
94 views

How does the stock market correlate with the economy?

What's the Correlation Coefficient between the Canadian and US stock and economy? Don't hesitate to discuss other stock exchanges. On Apr 30 2020, Paul Krugman wrote Opinion | Crashing Economy, ...
0
votes
0answers
25 views

Calculation of theoretical futures value

we form a stock index by using only two stocks in the index. One of the stocks is the Stock-A. The current selling price of the stock-A is 103 dollars and the second stock is the stock-B. The current ...
0
votes
1answer
15 views

Free Cash Flow and stock prices

There is this concept of free cash flow. Now, I have heard is the amount of money left after you reduce from the net income all other expenses that relate to labor and investment and so on. That is ...
0
votes
0answers
16 views

Is there a difference between settlement price vs market delivery price or are they the same thing?

I've been learning about Futures Contracts on Khan Academy (The finance related forum on there is quite old and no one has replied to my questions in the past) and the instructor has used the term "...
0
votes
0answers
33 views

Macroeconomics: Arbitrage equation and the price of stock

If the bank real interest rate is 2 percent, the percent gain in physical capital gain is 2 percent, the marginal product of capital is 3 percent, and the percent dividend return is 5 percent, what is ...
2
votes
1answer
38 views

By buying stocks, am I as an individual measurably affecting the economy?

I know that participating in an IPO is directly helping the company, because my money is going straight into their bank account. I know that the stock market as a whole has an effect on the economy. ...
0
votes
0answers
23 views

Why is there a demand for stocks? [duplicate]

The obvious answer is of course that people want to make a profit via either capital gains or dividends. Dividend stocks are easy to wrap my head around. As part owner of a company, an investor would ...
0
votes
1answer
24 views

CDO and Nonpositive Equity Questions

I have two questions about statements made in this video: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/bank-bailout/v/bailout-2-book-value At 6:25, the video ...
0
votes
0answers
23 views

Why do people care about voting control in companies?

I read a lot of companies who care about who gets voting control over the company. I don't see how this matters. Equity seems like the only thing that you should care about. You can give the voting ...
2
votes
0answers
18 views

Do (any) governments or central banks have an explicit or econometrically probable policy to “prop up” stock market prices?

This assumption (that governments [in the a broad sense of the term] prop up stock prices deliberately) has been taken as a given/assumption in another question here. Is there evidence that they ...
-3
votes
1answer
58 views

Why doesn't the Federal government just let the stock market crash?

In a normal financial crisis the government tries to maintain the stock market prices to prevent a spike in unemployment as companies collapse and run layoffs. But given that we're in the midst on a ...
0
votes
2answers
47 views

What was the reason for a boom on Wallstreet in 1938?

What was the reason for a boom on Wallstreet in 1938? Our reporter in N.Y. said today that this 1. week of April 2020 was the best since 1938. What was the reason for this rebound in 1938?
2
votes
0answers
17 views

What is the economic sense in multiplying standard deviation by the root of the sample size?

I found an example when a so-called volatility index is calculated by multiplication of a sample standard deviation by the ...

1
2 3 4 5