Questions tagged [stock-market]
Markets in which ownership stakes of firms (e.g. stocks/shares) can be traded.
154
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Could I build a program to buy and sell stocks continuously?
I am new to the world of economics and don't understand how the stock market works, but here is a theory I had:
Is it possible to automate buying and selling stocks in a manner that is continuous? I ...
0
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1answer
25 views
How to calculate cost of equity?
So i have this question on leverage and cost of capital:
Leverage and the cost of capital Gamma Airlines has an asset beta of 1.5. The risk-free interest rate is 6%, and the market risk premium is 8%....
1
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1answer
51 views
How to calculate standard deviation of a portfolio?
So i have this information:
Suppose that 60% of your portfolio is invested in Johnson & Johnson (JNJ) and the remainder is invested in Ford. You expect that over the coming year JNJ will give a ...
1
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0answers
21 views
Was magnitude of concerns about market correction/crashes prior to previous crashes similar in magnitude to today's concerns?
I am still new to learning about stock markets, and I have more of a history question. Right now, I hear a lot of people express their concerns of a market slow down within the next 1-3 years, or ...
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0answers
16 views
Stock market's obsession with growth of all companies?
I understand the stock market is a useful place to gain capital which allows further growth of a company. But it seems to me that even companies that have been on the stock market a while, appear to ...
0
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0answers
8 views
Stock Price vs Stock Return Autocorrelation
There are a lot of paper that claim stocks follow a random walk and therefore not predictable. A basis for this statements often times a autocorrelation test of the returns. However, what if there is ...
2
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0answers
18 views
Decomposition of stock index movements
I want to decompose stock index movements. I know the estimated 12 months earnings growth rate ($g_1$), estimated long run earnings growth rate ($g_2$) and the index value.
I am about to use two-...
0
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1answer
24 views
Open offer made by companies to take over [closed]
What is open offer in simple terms? What is its meaning in cases of taking over the major stakes in other company?
0
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0answers
9 views
Commonly used indicators for currency pair strength?
I am attempting to write a program in Python that monitors a single currency pair, GPB/NZD to be specific. My main focus will be to run constant calculations every 2 to 3 minutes in order to give ...
4
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3answers
79 views
Why does a company want the value of its stocks to be as high as possible?
My professor claims that a company want the value of its stocks will be as high as possible. Why should the company care? The company "minds its own business" and make its money. Why should it cares ...
1
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1answer
43 views
Is this lottery like stock market? [closed]
Consider the following imaginary lottery (motivated by
Massachusetts' Cash WinFall):
Ticket money obtained in the previous draw are given to the participants of the next draw proportionally to the ...
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0answers
17 views
Where to find a list of marketplaces (NYSE,LSE) and the financial products they offer?
I'm looking for a list (csv/json/api...) of all marketplaces (New York Stock Exchange...) and the financial products that are offered on those market places.
Preferrably worlwide but US and EU will ...
0
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0answers
19 views
Average Return for Commodity
Suppose I have a function of a varying values represented by randomness. A stock or price of a commodity would be a good example.
What is the average return for that stock on any given interval of ...
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0answers
34 views
Can a government invest in public companies so their dividends can finance the government
Is it possible that a country could use the money in its sovereign wealth fund to invest in different country's Stock Market and use the dividends to finance its government thus increasing spending ...
0
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1answer
31 views
How to find data about earning per share of S&P 500
I am working on a small project regarding PE ratio of SP500,for which I need historic earning per share data of SP500. I searched finance yahoo, but it has only prices data. Could anyone tell me the ...
7
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1answer
60 views
How time zones affects causality?
Considering that markets open in different time zones, in general the opening and closing times are different.
I suppose that a stock market opening later (in the same day) receive information on the ...
1
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1answer
53 views
Is this market monopoly or duopoly?
Could you help me to identify monopoly, because I got confused. There is a company with market share of 54 %. The second one has market share of 21 %.
Can this market be characterized as monopoly or ...
0
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1answer
24 views
Is it possible for shareholders to get a companies assets in place of currency?
To my knowledge being a shareholder is owning a portion of a company. Then by that logic shouldn't a shareholder be able to request a companies assets instead of money? As an example, if I own 100 ...
0
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1answer
38 views
log returns in finance
Why are log returns used in finance? For example to calculate a stocks performance. There are a lot of articles on that topic yet I don't find them very helpful. Could somebody please explain step by ...
2
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2answers
51 views
Why does firing employees appear to increase the share price of a company?
The last case is GM in the USA. I fail to understand why does this happen. I understand that laying off jobs means higher dividend for the share holder and thus higher stock prices but in the long run ...
1
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3answers
117 views
Bank Runs During the 1930s
Why were there numerous banks run right after the stock market crash of 1929? Why would a bank fail because the stock market crashes?
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1answer
30 views
Is it possible to commodify the State?
Karl Marx said that capitalism commodifies everything. So I'm wondering if that rule applies to the very State itself.
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2answers
48 views
How are the price signals of stocks in the stock market centralized?
We can look up the price of a stock, like that of Google, and it gives a particular figure. I would like to know how the price signal is "centralized". What I mean is: if the trades happen between ...
5
votes
2answers
106 views
How is the GDP growing when nothing else seems to be?
We've had strong GDP growth all three quarters this year. To me, that would indicate that, in at least some areas, we should be seeing growth. However, from my extremely ignorant armchair, it doesn't ...
5
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2answers
563 views
What does a stock market index stand for?
I know that a stock market index (like S&P, NIKKEI, etc.) is computed from the prices of selected stocks, but I was wondering why the name of the currency is almost never expressed. For example, ...
1
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1answer
22 views
How are final stock prices arrived at?
'Everybody' knows that prices are generally governed by offer & demand, but I am wondering on the details of the stock exchange here.
How are stock prices (the ones which are nicely listed every ...
1
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1answer
40 views
Why will the holder of a broad-based index fund, by definition, achieve the average return for the market?
A Random Walk Down Wall Street (2015 11 ed, but an 2019 ed. is upcoming). pp. 271 Bottom – 272 Top.
All “smart beta” strategies represent active management rather than indexing. Capitalization-...
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0answers
9 views
Who pays wash traders' transaction costs?
A Random Walk Down Wall Street (2015 11 ed). p. 49 Bottom - 50 Top.
Pool members were in the swim with the specialist on their side. A stock-exchange specialist functions as a broker’s broker. If ...
0
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0answers
10 views
Why do wash traders need 'a broker's broker'?
A Random Walk Down Wall Street (2015 11 ed). p. 49 Bottom - 50 Top.
Pool members were in the swim with the specialist on their side. A stock-exchange specialist functions $\color{red}{\text{as a ...
0
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1answer
24 views
What would an investment bank have to gain by warning of an impending financial crisis?
After reading a recent article and a discussion with a friend, I was left wondering what an investment bank would have to gain by claiming that a financial crisis is coming.
I can see an obvious ...
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0answers
29 views
Value of companies with circular ownership [duplicate]
Given two companies, total assets of $100 million each.
Company 'A' owns \$50M of company 'B'.
Company 'B' owns \$50M of company 'A'.
If you look at the value of both companies do you ...
1
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2answers
72 views
Why is the stock market always rising?
I asked myself: How is it that the stocks are always rising? How is money generated every year so that the value of a company rises?
I mean, at some point there is a finite amount of money in the ...
2
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1answer
42 views
what does historical volatility explain?
Let's assume we have close prices of one stock of period one year. As far as I understand historical volatility is standard deviation of log return, however I do not understand what this actually mean....
4
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1answer
47 views
Are stock exchanges market makers?
Are stock exchanges like NASDAQ and NYSE market makers? In other words, are they providing liquidity by pairing individual buyers and sellers with each other in real-time? Or does it work differently?
2
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1answer
34 views
Where can I find data on market capitalization?
I am working on Home Equity/Bond Bias and need data to calculate the indicators of Home Equity Bias. So where can I find data on market capitalization (stocks and bonds) by year for each country?
...
2
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1answer
37 views
Market Value Changing in Response to News
On May 24th the DJIA dropped and the news has been attributing it to Donald Trump's cancelation of a talk with North Korea (see image below).
My understanding is that the companies making up the DJIA ...
1
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1answer
21 views
Growth in dividends will equal growth of earnings
Let $Div_t$ be the dividend per share at date $t$.
$\displaystyle Div_t=\frac{\text{Earnings}_t}{\text{Shares Outstanding}_t}\times\text{Dividend Payout Rate}_t$ ------------------- (1)
My textbook ...
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0answers
30 views
How does a stock market work under a command economy
If a central government owns the means of production and controls business, what ramifications does that have on a stock market? Under such an economy are shares still traded as they are in a mixed/...
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4answers
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Can the stock market grow faster than GDP indefinitely?
My understanding of conventional wisdom is that average long-term growth of advanced economies is expected to be significantly lower than the average long-term growth of the value of the largest firms ...
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0answers
19 views
Why does US jobs and inflation have an affect on European equities?
There are articles such as 'European shares crawl higher as investors eye US inflation data'. Is this just put down to Americans may have more money to spend overseas so investors speculate higher ...
5
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3answers
678 views
What is the exact relationship between the efficient-market and random-walk hypotheses?
The efficient-market and random-walk hypotheses are often discussed together as formalizations of the idea that "you can't consistently beat the stock market". But in my experience, they're often used ...
4
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2answers
36 views
What does a “sell-off” mean if every stock transaction is balanced?
If every stock transaction is "balanced" (1 sell = 1 buy), then what does a "sell-off" actually mean and how does it move the price of a stock?
Ex. If millions of people sell a stock, there's ...
1
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1answer
18 views
Alternative measure for market capitalization, company “value”
I wonder what the term "value" of a company, currency, etc could mean. The most obvious, to me, is market capitalization (related: Clarifying the meaning of market capitalization)
Is there also ...
1
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1answer
2k views
How to calculate average buy price when you buy, sell and rebuy
I wanted to get my avaerage buy price for some stocks I bought and see if I made money.
So far for just buying and then later selling I have been calculating the avaege buy price using this formula
<...
0
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0answers
49 views
What caused the increased market trading since late 2016?
I was looking at the market (DOW) performance today and noticed an oddity: Beginning late in 2016 trading activity roughly tripled. The change was sudden and remarkably consistent. What would cause ...
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0answers
52 views
U.S. stock market 2/5/18
Why did American share prices fall sharply on February 5, 2018? What are the major contributing factors to this?
1
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1answer
63 views
World Stock Markets that went up in 2008
We all know that the US stock market(s) collapsed in price in 2008, see https://en.wikipedia.org/wiki/United_States_bear_market_of_2007%E2%80%9309.
I was wondering what countries' stock markets went ...
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2answers
115 views
Pro and cons to finding coal
I found some Anthracite coal. I know a coal bed of this quality is worth money? I also know that there is a "no pun intended" carbon foot print if I decide to share my findings to others.
Economics ...
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1answer
39 views
How Mark Zuckerburg (or any other company founder) got valued at billions?
I read that Facebook got worth at billions after IPO, but how did this brought money to Mark himself. And did Facebook earned before IPO, or after IPO. I think that after facebook earns from revenue ...
0
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1answer
84 views
testing the relationship between stock price and macroeconomic variables
I'm in the midst of preparing data to test the relationship between stock index and macroeconomic variables. The variables include m1, cpi, ipi, interest rate, exchange rate. I have some question ...
