Questions tagged [stock-market]
Markets in which ownership stakes of firms (e.g. stocks/shares) can be traded.
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Short vs. long horizon event studies?
I am studying the impact of announcements by a Central Bank on a stock's returns. To measure these impacts, I employ an event study (where my event window is 10 days and my estimation window is 60 ...
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How to find the share price with respect to the type of share?
As someone coming from a mathematical background who has started reading into some basic finance, there are a few concepts that I am struggling to understand and would be grateful if I could check to ...
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Is the government putting a 20% tax on dividends equivalent to the government owning 20% of the company?
This question is about an answer user253751 wrote to one of my questions on Politics SE.
Consider a country where a government puts a 20% tax on oil and gas profits. Consider a different country ...
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Is it possible for the stock market to beat inflation forever?
Just a few thoughts on the possibility of markets beating inflation in the long, long term (say, hundreds of years). I am a theoretical physicist, not an economist, so please forgive my ignorance.
I ...
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What were the effects of anti-vaxxers on the vaccine market?
I am looking for the negative impacts caused by anti-vaxxers on the vaccine market. Any information is much appreciated.
Thank you!
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Why is the Chinese stock market weak while its economy is strong?
China's economy has had a decent growth rate even post-2008 however, the stock market indices appear to be weak and stuck at more or less the same level since long time as shown below for Shanghai, ...
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What happens to Deposits when purchasing stock shares or money market fund shares?
I'm trying to understand the flow of money into the shadow banking sector, e.g. what happens when deposits are transferred to either a brokerage, or a money market mutual fund (MMMF), and specifically ...
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Placing buy orders above the current market price in the stock market
Consider this hypothetical situation:
Let's say that microsoft stock is currently being traded for 200 dollars and via my broker I place a buy order of one stock for 1000 dollars. I imagine there is ...
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How are stock prices determined in the following cases?
I looked at this question already. I know there is an order book with bid and ask and that the price is updated when a match occurs. But I have two questions:
What happens when the bid is higher than ...
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Why do stock returns seem to be uncorrelated with interest rate?
Since expected return of stock is risk-free rate plus risk premium, intuitively they should be correlated. Of course the size of risk premium is not constant, but it's hard to imagine why risk premium ...
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Convert implied probability into real probability
In this article I have read that:
A risk-neutral world is one where all investors are indifferent to risk and don’t require any extra risk premium for the risk they bear. In this world, all assets (...
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How Did The Coronavirus Market Crash Cause Excessive Price Rises Of Luxury Goods?
The COVID-19 pandemic had caused the unemployment rate to rise quite significantly in many countries. Furthering this, most countries are facing economic crises, most notably, the United States with ...
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"Rate of exploitation" and savings growth
The normative implication in Marxian economics is that "exploitation of labour-power" is a bad thing. I'm hoping to understand quantitatively who are the winners and losers.
Definitions:
A &...
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Fundamental knowledge about invest, stock and economics for self learning [closed]
I am not expertised in the field of economics and stock so I do not know anything about invest. Would anyone please recommend any book/textbook for the initial leaner to get understanding of all these ...
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How can both floating and outstanding shares of a company increase?
A stock named 'HDFC Bank' listed on NSE (India's stock exchange) has shown an increase in shares outstanding and floating stock outstanding YoY. How?
Credits: TradingView
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Private firms and market concentration
In this paper:
http://economia.uc.cl/wp-content/uploads/2018/09/Are-U.S.-Industries-Becoming-More-Concentrated-PAPER.pdf
they say that "increasing roles of private and foreign firms" can ...
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Calculating profit from price and cost
For a given item, if we know that the equilibrium price is 400 and the cost of manufacturing quantity $x$ of the item is $2x^3+900$, then how can I find the profit?
My initial thoughts are that this ...
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Do stock indexes (S&P 500, DJ, ...) directly depend on inflation?
I can't understand what stock indexes really are. What they are representing?
As far as I know, they represent relative change (in points) in the prices of shares of a given set of companies. Is that ...
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Why aren't stock bubble crashes just zero sum exchanges of wealth?
(I'm not an economics student or anything of the sort)
Let's say the total valuation of a country's stocks rises from 1000 to 2000 during year 1, and then "crashes" from 2000 to 1000 in year ...
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Why are stock markets not open 24/7?
All of the stock markets have limited trading days and hours. Why there should be off day? Why are stock markets not run 24/7?
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Why Shiller P/E stopped being mean reverting?
It looks like Shiller's P/E stopped being mean reverting after the year 2000. I have read online that this could be due to some changes in the way companies started to account their earnings.
Is P/E ...
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How is the stock value of an index fund like VOO determined?
I understand that an Index Fund tracks an existing index (e.g., S&P500) by just buying the same stock in an equal proportion that the index has, and the fact that we can assume that the Index Fund ...
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US GDP vs S&P 500 market cap
I googled US GDP and it shows $20.9 Trillion.
Then I googled S&P 500 market cap and it shows $42.4 Trillion.
Can someone explain to me like I am a 5 year old what is going on?
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Why S&P 500 earning growth is so much higher than GDP growth?
From Q4 2019 to Q4 2022 US GDP (nominal) has grown from 21.694 trillion to 24 trillion. Which accounts to 10.5% growth in 3 years. Data from https://fred.stlouisfed.org/series/GDP
Whereas S&P500 ...
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Does dilution of company increase its networth?
Let's say a company has 1 million shares and its net worth is 10 million dollars. So each share has an intrinsic value of 10 USD.
Now lets say the company introduces 100 thousand shares and sells each ...
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Open Interest On Stocks
According to the first bullet point in this explanation, "In the stock market, open interest is the number of buy orders submitted before the market opens. When the open interest is high, people ...
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Could a shareholder influence how a company acts?
As a private person I'm able to purchase shares of a market-listed company. That means, I own a part of the company. Some big companies are critized for actions to maximize their profit in a way that ...
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Availability of shareholder structures
Is equity trading tracked centrally (by one or more institutions) in a way that one can always know and report the shareholder structure of any company that is traded on the stock exchange, possibly ...
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How long may it take that all newly issued shares of a company are sold?
From the answer to the question Newly issued shares are sold on the stock market? I have learned that it may happen that not all newly issued shares are sold in advance. How bad this is depends on how ...
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How are retail investors served on the primary market?
When a company issues new shares on the primary market, is it possible or even obligatory to reserve a given amount for retail investors?
If it is possible: How often is this done? (From Wikipedia I ...
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Why is equity trading an active contribution to the development and growth of economy?
How can one explain in a few words why equity trading is an active contribution to the development and growth of economy?
At first sight it seems counter-intuitive (for the layman): Buying newly ...
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Can seasoned/secondary equity offering impact the stock price to the upside?
A secondary equity offering is one way among others to raise equity capital. Intuitively, this should have a dilutive impact on existing shareholders, but not always. When does this operation impact ...
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If GOOG shares confer no voting rights, where do their value comes from?
I recently found out that the difference between GOOG and GOOGL shares is that GOOG shares do not have voting rights. Then I read that the leadership is not planning to pay dividends anytime soon (...
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The nutshell of stock price
I don't know if this is the right place to ask this question, if not, please be so kind and refer me to the right place, much appreciated!
Say if a company releases a million share with 10 each, and a ...
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Are stocks prices included in GDP?
According to definition of GDP as total expenditure, GDP includes goods and services currently produced. So it does not include transactions involving items produced in the past. For example buying a ...
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How does a closed Stock Exchange stop people selling/buying
A question I've had since hearing of the Russian stock exchange being closed, and how this will likely cause a severe drop in their stock values once it opens again, is how does a closed stock ...
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How long can stock exchanges stay closed and with what consequences?
Sometimes, states deliberately close their stock exchanges and keep them closed for a long time (longer than the usual nights/weekends). As far as I understand, this a drastic measure, something done ...
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Differences between stocks and bonds
I just learned what bonds are. They seem similar to stocks, but different in key ways. I'd like to know all the ways. I'll list the differences that I currently believe they have. The only reason I'm ...
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Is excess liquidity necessarily a leading (not lagging) indicator of market performance?
I'm basically looking at this chart:
At first glance, I'm not sure it's clear as to why excess liquidity (money supply growth less GDP growth) is charted a whole 12 months ahead in the series. I ...
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Market makers outside of exchanges
I found this picture on SEC of how brokers will handle their customer's orders.
Why are there market maker out side of exchange? Isn’t it dealers or wholesalers that’s not approved by exchanges as a ...
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What type of data we use to predict volatility of an asset with GARCH or ARCH models?
When we are trying to feed time-series data to a GARCH or ARCH model, what kind of data should we give the model?
A: Absolute difference between daily prices over-time
B: % of the difference between ...
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What are the consequences of an increase in interest rates for States?
As inflation is high, central banks such as the FED and the ECB hike rates.
One of the consequences is that the stock market is falling and in particular companies having a lot of debt (such as ...
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Why is a stock market crash so bad?
Many folks speak about potential stock market crashes when central banks raise interest rates. I am not a graduate economist nor do I pretend to understand it, but I am definitely curious about what'...
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Connection assets under management and net worth
Could you help me to understand the connection between assets under management and net worth?
In my understanding, if a corporation has $X$ dollars Assets Under Management, and if a shareholder owns $...
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How are GME prices still so high?
My naive models of how stocks are valued are by the relationship (number of stocks that exist) * (price of stock) = total value of company. This squares intuitively with my naive models of stocks ...
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How can the defaults of Evergrande, or other Chinese property companies, crash stock markets worldwide — when the CCP has at least $3.4 trillion USD?
News articles harbinger that defaults like evergrande's can collapse stock markets GLOBALLY — like the USA's — not just China's.
Could Evergrande cause a financial crisis?
Evergrande is an enormous ...
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Mortgage-Backed Securities
I was reading about MBS's and according to my understanding, suppose the bank gives me person a loan for house. Then, the bank sells the loan to the investor/government through an agency like Freddie ...
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Volatility indexes
I want to use a volatility index as a measure of economic policy uncertainty. The index that I want to use is CBOE Volatility Index: VIX, but I don't know if I only can use this for US or if I can use ...
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How is trending coins or stocks calculated? What is the formula or metric used to define "top 10 trending coins or stocks today"?
We can see the top 10 trending coins today in Coinmarketcap, Coingecko, etc. The same goes for stocks. So, how is it calculated? They're obviously taking multiple factors into consideration - total ...
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Why is a stock chart data different from historical data?
I was analyzing a stock's volume to get the volume peaks of it when I noticed that these peaks are not the same in the stock's chart and historical data.
If you analyse this chart (1 month period) ...
