Questions tagged [stock-market]
Markets in which ownership stakes of firms (e.g. stocks/shares) can be traded.
251
questions
2
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1answer
27 views
Why would using real-time settlements have helped combat some of the chaos that occurred during the January 2021 GameStop saga?
I read on cnbc.com (mirror):
Tenev also advocated for real-time settlement instead of two-day settlement in order to help combat some of the chaos that occurred during the GameStop saga.
Why would ...
7
votes
4answers
1k views
Are financial markets “unique” for each “currency pair”, or are they simply “translated”?
This is something I've been long wondering about.
Let's say that I have statistics showing the daily closing Bitcoin price in USD since early 2009. Great. Now, if I wanted to get the daily closing ...
1
vote
4answers
71 views
What happened when the money from share issuance is spent?
Let's assume that new bank is incorporated and it issued 100 000 shares with nominal value odf $100.
Let's also assume that all shares are sold for the same price, so bank now has 10 million dollars.
...
0
votes
1answer
14 views
Why does US equities valuation have the downward pressure on USD?
While making readings on economics I came across a sentence:
..large valuation gap that has opened up between US equities and the rest of the world. This could help bid up non-US equity valuations and ...
0
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2answers
33 views
Buying and selling in the stock market
I am a total beginner to this, but from the few online videos about how (practical) trading works, I understand that when buyers dominate the market the prices go up and when sellers dominate the ...
0
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2answers
59 views
How can anyone possibly predict how the price of anything (stocks, Bitcoin, fiat, etc.) will change without “insider knowledge”?
Other than the fact that all centralized (and thus "quick") exchanges require KYC/AML nonsense, making it impossible for me to have an account there, I've never dared to even try once to &...
0
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0answers
4 views
Buying real gold vs buying a stock that tracks the price of gold? [migrated]
I want to invest in gold. I have two options: On an exchange like etoro, I can buy shares of a stock that tracks the price of gold. Or I can literally buy a gold bar.
What's the better option? The ...
-1
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0answers
69 views
Does it make sense to issue several shares for a single company?
I have written a crypto software that distributes (donated) funds to scientists and other common good producers. (I will call all of them "scientists" for simplicity.)
Each scientist ...
0
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1answer
52 views
Where do stocks get their value from? [duplicate]
I'm aware that some companies give out dividends to their shareholders, but are there companies that don't? And if they don't, what incentivizes people to buy stocks at the IPO? Is it simply the ...
0
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2answers
64 views
Are equity prices and stock prices the same?
Do we use in common language "equity price" as a synonym to "stock price"?
0
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2answers
75 views
Why do stocks that don’t pay any dividends change price when the company does better?
I don’t understand why (non-dividend paying) stocks increase in price when a company is successful; is it just because everyone expects that everyone else will find it more valuable because the ...
1
vote
0answers
16 views
Do stock prices really tend towards a fair valuation? [migrated]
I recently started working myself into the concepts of valuation. While I find the concept of fair value very interesting and intuitive, I wonder if prices are actually empirically driven by value in ...
1
vote
1answer
43 views
Is it possible to peg a cryptocurrency to a stock or bond index?
What if the creators of a new cryptocurrency gave out new units of the cryptocurrency in exchange for shares of a stock or bond index fund, held these shares in reserves, and allowed owners of the ...
1
vote
1answer
50 views
Cointegration in stock market between different market places
Hi guys im interested in cointegration in stock market between Brazil, USA, London, China, India, Argentina and Hong Kong.
Since I want to compare each country’s index to the BR index, how do i do to ...
0
votes
4answers
75 views
Why do people think a stock should have a certain price based on the company's revenue?
Stock investment comes part and parcel with discussions about quarterly earnings, P/E ratios, and a host of other considerations designed to measure the "intrinsic value" of a stock and ...
1
vote
0answers
19 views
Why did the French not invest much in the stock market prior to 1990?
https://fr.wikipedia.org/wiki/Plan_d%27%C3%A9pargne_en_actions says:
Le PEA a été créé en 1992 afin d'encourager l'investissement en bourse des particuliers, notoirement bas en France.
Google ...
2
votes
0answers
35 views
How does the fed pump the stock market [closed]
I've been hearing a lot about the fed "pumping the stock market" with trillions of dollars to maintain prices. I know the fed isn't allowed to actually buy stocks so how is this money being ...
0
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0answers
13 views
What is the intuition for the potential loss of market makers on LS-LSMR?
What risk do liquidity providers take on when they provide liquidity to an LS-LSMR automated market maker pool?
How much can they lose?
2
votes
1answer
27 views
How do stock index futures help an economy?
It seems that stock index futures affect economic growth, but I don't know how they work. Please can someone explain?
Thanks in advance~
0
votes
1answer
45 views
Why doesn't stock market help to boost the economic growth directly?
For example, during the recession, the central bank often goes to buy financial instruments that are riskier than government bonds (such as corporate bonds)- which is called "quantitative easing&...
0
votes
2answers
28 views
Does treasury pay interest+ face value to the fed?
heard all the profit that the fed makes goes into treasury.. does that mean the treasury department can make unlimited money buy selling bonds to the fed? like if they issue bond to people, and the ...
2
votes
3answers
92 views
If North American stock markets are semi-strong efficient, why are indices like S&P500 expected to grow?
I'm narrowing this question on Reddit's r/investing to North America. But don't hesitate to discuss other Five Eyes (FVEY) – Australia, Canada, New Zealand, UK, US. I'm posting here because I ...
0
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0answers
14 views
Adjusted SHARE Price and Return calculation
I hope my queries makes sense as I am pretty new to business finance (not sure if it's appropriate to post here). To be honest, this query is related to the assignment from my school which I need to ...
1
vote
2answers
70 views
How does fed cutting federal fund rate affect student loan
If fed cuts rate, it means it's cutting federal fund rate right? then why do loans like credit card and stuend loan? those aren't like Mortgage rate which the fed cuts its rate by buying MBS
6
votes
6answers
646 views
How can the stock market keep growing indefinitely?
It sounds like a dumb question, but there is only so much money in the world. Assets can grow, but money can only be printed. So if there is 400 trillion dollars worth of money in the world, and the ...
-2
votes
1answer
41 views
mortgage rate in 2008 [closed]
if banks and finanfial entity paniced, which cause people to stop lending which leads to higher interest rate, how did the mortage rate stayed the same in 2008? it barely dropped. It's kind of ...
1
vote
1answer
52 views
Bankruptcy Vs default
If a company files for bankruptcy, how come its stock still trades ?
E.g. On June 17, Wirecard was valued at more than $14 billion. Eight days later, it filed for the German equivalent of bankruptcy. ...
1
vote
1answer
35 views
What does it mean, 'Higher interest rates attract FIIs and FPIs'?
What would interest rates have anything to do with shares? When we say a higher interest rate attracts FII/FPI, does it not mean it is investing in shares of a company? For example, how does it help a ...
-3
votes
1answer
104 views
Why haven't ARK's ETFs with 0.75% MERs been mimicked?
I surmise that fully duplicating ARK INVEST's ETFs may violate intellectual property law, so I utilise 'mimick' instead. ARK's website exhibits each of their ETFs' portfolios. So why haven't other ...
1
vote
1answer
48 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 ...
8
votes
3answers
1k 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
20 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
30 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
56 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
66 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
373 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
35 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
184 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
54 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
106 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
38 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
52 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
59 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
54 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
51 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
47 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 ...
