Questions tagged [stock-market]
Markets in which ownership stakes of firms (e.g. stocks/shares) can be traded.
259
questions
-2
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1answer
33 views
Can we 'predict' the delta of a stock? The delta of a stock is $\pm 1$ right?
A stock is like a living organism. A sparrow, say. And we are able to create an emergent-based abstraction of that sparrow, which closely approximates the sparrow itself, accounting for migration ...
-1
votes
2answers
84 views
What determines the price of a stock other than supply and demand?
It is said that supply and demand determine the price of stocks but there must be other factors. For example when a company is about to expand the price will usually go up. Why? (The answer that it is ...
0
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0answers
22 views
Rationalising today's bond market and stock market
As of this writing, the 10-year T note yields 1.437%, on a steady 3-month downward trend (from 1.55-1.75% in recent months) while the S&P 500 is nearing all-time-highs. When these long-term bond ...
0
votes
0answers
18 views
Are short squeezes becoming more common, and if so, why?
This year I have read about short squeezes more often than any time in the past. Are short squeezes becoming more common, and if so, why?
0
votes
1answer
24 views
What is the relationship between interest rates and stock values
I have started reading the book After the music stopped and came across a section which I couldnt quite understand.
This is the following passage
the fundamental determinants of
stock values are ...
1
vote
0answers
13 views
Black-Litterman Weights for Intersecting Asset Classes
I'm trying to implement Black-Litterman for an arbitrary selection of assets some of which might be subsets or intersect with others.
For example, one portfolio might be
US Equities (VTI)
A global ...
0
votes
1answer
36 views
What makes a shareholder a “shareholder of record”?
In public companies filling some reports with the SEC (10K for example), there is a mention of the number of shareholders of record.
Example:
"As of April 20, 2021, we had approximately 40 ...
2
votes
0answers
27 views
Are return on investments “sticky”?
From what I understand in an economic downturn the wages are "sticky".
This results in increased unemployment.
To combat this the central bank according to monetarism lowers the interest ...
2
votes
2answers
194 views
Does investing in the stock market contribute to economic growth?
I am morally opposed to economic growth: I think that for the good of our planet we need to be shrinking human impact in pretty much every way, not increasing it.
If I invest in the stock market, I ...
-1
votes
1answer
65 views
Are returns from secondary capital market funds (stocks and bonds) a form of unearned income?
If I own a bunch of market funds which hold securities from secondary capital markets (stock and bond markets), am I partaking in unearned income/economic rent?
Let me clarify what I my question is ...
0
votes
1answer
52 views
What is causing the difference between USA financial indexes and perceived economy?
While the world is facing economic problems since the spread of Covid-19 in Feb 2020, the main indexes in the world (S&P500 and NASDAQ100) reached and exceeded twice their maximum levels. I ...
0
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0answers
26 views
Relationship between stock market and exchange rate
I am looking for some references on the relationship between the stock market and the exchange rate, both from the empirical and theorical side.
Is there any theory which suggests a relationship ...
0
votes
1answer
93 views
Is “technical chart analysis” for stock development something that is scientifically supported?
I assume the answer is "no" because if you can predict the development of a stock then people would get very rich. However there are so many YouTube channels and web sites where people talk ...
0
votes
2answers
76 views
Is the fundamental analysis also a self-fulfilling prophecy?
John J. Murphy in the first chapter of his book "TECHNICAL ANALYSIS OF FINANCIAL MARKETS" says that concerns regarding fundamental analysis being a self-fulfilling prophecy are seldomly ...
2
votes
1answer
81 views
Do actively managed ETFs help the economy in any way, and if so, how?
Listening to the ARK Invest podcast, I've heard several times ETF managers saying that they have a positive impact on the economy because by choosing the most promising companies to invest in, they ...
-1
votes
1answer
25 views
Persons with high sentiment impact factor [closed]
I'm planning an empirical study on the impact of social media on the stock market.
Therefore I would like to pick out several people who could have a big impact with their posts on social media. ...
2
votes
1answer
36 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 ...
11
votes
4answers
3k 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
85 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
17 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
votes
2answers
40 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
votes
2answers
78 views
How can anyone possibly predict how the price of anything (stocks, Bitcoin, fiat, etc.) will change without “insider knowledge”? [closed]
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
votes
1answer
60 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
votes
2answers
65 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
81 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
1answer
68 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
59 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
79 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 ...
0
votes
0answers
22 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 ...
1
vote
0answers
47 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
votes
0answers
20 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
28 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
55 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
33 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 ...
1
vote
3answers
103 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
votes
0answers
24 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
74 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
7
votes
6answers
680 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
43 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
59 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
127 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
21 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
35 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 ...
-1
votes
2answers
76 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&...
0
votes
1answer
67 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 ...
2
votes
1answer
1k 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
40 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 ...
