Questions tagged [stock-market]

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

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3
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1answer
74 views

Clarifying the meaning of market capitalization

I'm new to this kind of topic and I'm trying to get a deeper understand. I read that "the shares' price times the number of shares outstanding is the value of a company (=market capitalization)". ...
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2answers
45 views

How long do stock markets usually take to process complex new public information?

Here is a question that I've been thinking about for a while: Theoretically, assuming investors are rational, a stock's price will be equal to its its intrinsic value (present value of discounted ...
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0answers
19 views

Model for the psychology of trading?

In some cases I see otherwise stable stocks or commodities having wild swings in price on exchanges. Even though the underlying company or commodity is going along normally and there is no news that ...
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2answers
77 views

Buying stocks in company merging/acquisitions

Does an acquiring company have to buy all the stocks of a target company to acquire/merge with it? If so, why? I thought stocks give voting rights and dividends, but not direct control of company ...
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1answer
57 views

Collar strategy for options trading [closed]

I am new to investing on the market so I am doing some research and studying. From what I can tell, the purpose of a collar strategy for options trading is to protect your gains you've made on the ...
7
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2answers
312 views

Do stock markets price in existential risk (i.e. global nuclear war)?

Question Moved from Money StackExchange: https://money.stackexchange.com/questions/74002/do-stock-markets-price-in-existential-risk-i-e-global-nuclear-war Q: Do stock markets price in existential ...
2
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1answer
192 views

Beginner level books on market economics

Which books can be recommended for a beginner with a strong math background, who wishes to learn how markets work, what is a stock, what is a bond, how to trade e.t.c. and has a minimal knowledge of ...
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5answers
4k views

When a stock market crashes, how does money just disappear?

I looked it up online (here), but I find it hard to believe that money literally "disappears". For example, if I buy 10 stocks of a toaster company for \$100 per share, and then the stock value drops ...
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1answer
52 views

Find high resolution market data for a single ticker?

I'm doing my dissertation at the moment and for it, I need high-resolution market data. The only problem is I'm a student and haven't got much money. A lot of sites I have seen want monthly ...
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1answer
50 views

I do not quite get a phrase that I read in the Financial Times today.

"a share that has fallen by 95 per cent has fallen by half since it has fallen by 90 per cent" Can you explain the logic behind that?
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1answer
95 views

How can trailing and forward P/E ratio of main stock markets show such huge difference

I've recently found this web page, listing the average P/E Ratios of main stock markets: http://www.zutosmoney.com/ Here I reproduce just a small extract: INDEX - Country - Trailing PER - Forward ...
4
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1answer
52 views

Are stock trade commissions evidence of anti-competitive practice?

A typical commission on a typical stock trade these days is $8. I don't understood how it can cost this much. It looks like the entire process is happening in software, electronically, and so the ...
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1answer
43 views

Do the stock performances of various companies have a measurable correlation with exchange rate?

For example if the values of big companies in a country decrease, will the value of that country's currency measurably decrease?
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2answers
5k views

What are examples of inversely (negatively) correlated stock prices in economics?

I’m looking for example of two goods/wealth that demonstrate inverse/negative correlation. For example if price of A rises then price of ...
5
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1answer
89 views

What's wrong with have a 'one second tick' on stock market trades, to prevent high frequency trading? [duplicate]

Part of how high frequency trading works, is by taking advantage of millisecond advantages over other traders in communicating with the stock exchange. To gain these advantages, high frequency ...
9
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1answer
254 views

Why do stock exchanges not operate at a fixed frequency?

Would this not be more fair towards traders who don't trade at high frequency? And would it not be possible to distribute this fixed frequency to other exchanges, modulo relativity? The reason I'm ...
2
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1answer
17 views

Does constant market cap imply reversion to the mean

If the market cap of a market is constant, do stock prices necessarily follow the principle of reversion to the mean? How would one prove this? (I'm pretty sure this is trivial, but I don't know how ...
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0answers
41 views

Online stock portfolio selection algorithms applicable to forex markets?

Are stock portfolio selection algorithms, like the universal portfolio algorithm, applicable to forex markets, treating each currency like a stock?
3
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1answer
50 views

The appeal of low-dividend stocks when trading with government debt

Background: In the 1710s, the British government borrowed heavily to finance wars. To reduce the interest on this debt, the government converted this debt into stock from a private company. The ...
0
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1answer
423 views

Securities traded in different currency

Excuse me if this is not the site to ask this question but I read in meta that you have a accounting tag so here we go. If I made a buy of an ETF in two different exchanges with different currencies ...
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1answer
37 views

When should a company's revenue and share price grow faster or slower than the economy?

I was listening to a famous investor discuss an investment of his in an interview. He had bought shares in a bank that was quite successful, though it was a small bank. The bank is based in a highly ...
6
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4answers
1k views

Why do people trade derivatives?

If I have information that an asset will increase or decrease in value, I can profit on that information by buying or shorting the asset. Why, then, would anyone trade derivatives when they can just ...
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2answers
68 views

How to understand share value vs real worth of the company

When read in the news articles for stock market price, I learned that the share value of a company changes in a year. My question is does the share value really reflect if the company is doing good ...
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3answers
329 views

How can the share price of a company be less than its (theoretical) liquidation value?

A recent article from Bloomberg states that Deutsche Bank's share price is less than half its theoretical liquidation value. According to Investopedia, liquidation value is defined as: The total ...
2
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1answer
76 views

Is it fair to compare 1950 US economy to 2016 US economy?

In the last 2 days, bond market has declined a bit. All major news outlets published articles like these: Can We Ignore the Alarm Bells the Bond Market Is Ringing? Such an event in bond market ...
2
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1answer
74 views

Can Apple use its off-shore cash to do Apple stock buy-backs tax free?

It is well established that Apple holds $181B in cash overseas. This appears to be to avoid US Taxes. Apple has been doing significant stock buy-backs. My question is: Can Apple use its off-shore ...
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0answers
75 views

If the company were to buy back all their shares, does that mean the company would own itself? [closed]

If a publicly traded company buys back all it's shares from the public, majority holder and every last person that owns it's shares who would own the company? Obviously, it wouldn't be a normal ...
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1answer
572 views

Where to get historical intraday trading data from?

I have started to learn about trading and would like to play around with historical data. I therefor need a dataset, that provides intraday values, not only opening, high and low prices for a specific ...
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1answer
111 views

Statistical tests/models to use for Macroeconomic and Financial Research

I am a student, new to research and have chosen a challenging field to perform my research in. While I have been reading about similar research's, as part of my literature review, I observed various ...
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0answers
56 views

Absolute Value of Log in stocks returns

Well, i'm interested in model a GARCH for a serie. The original serie is $y_t$ (price index of a Stock Market), which has a unit root. So i create the returns: $x_t = ln(y_t) - ln(y_{t-1})$. Now, i'm ...
5
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1answer
7k views

Did JP Morgan mitigate the effects of the Great Depression?

I had heard that, at the start of the Great Depression, JP Morgan and other bankers attempted to prevent the depression by purchasing some of the overpriced stock. Did the actions of JP Morgan and the ...
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1answer
553 views

What does "(Earnings Per Share) sen" mean in a shareholders' context?

What does "SEN" / "sen" (possibly an abbreviation?) mean in a shareholders' context? In particular, I am wondering how to interpret "sen" in the following context: "Earnings Per Share (sen)" This ...
2
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2answers
12k views

What is the difference between shareholder's equity, equity, and book value?

I have been doing some reading and I have found that shareholder's equity is equal to the company's total assets minus its total liabilities. Equity is apparently defined in much the same way. Book ...
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0answers
48 views

Calculating Annualized Average Return

I am currently working on a problem set in a book that asks me to compute the annualized average return for a portfolio, benchmark, and then the relative return from the annual returns reported. I ...
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2answers
395 views

Are there any major commodity markets with a public order book?

Most major exchanges seem to have secret order books. For example, on the NYSE only the specialists know the order books. On the NASDAQ only the market maker can see the order book. On Globex, the ...
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0answers
57 views

World company database?

I need to find the list of companies with their respective market caps and their sectors of activities. For now I have found these two links: • https://goo.gl/E8WJzu • http://goo.gl/vuHDuF But I ...
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1answer
54 views

Who paid the difference on a warrant if i am winnnig

I am discovering the mechanism of a warrant but there is still something that i can't understand. Let's take a simple example a call warrant with a strike of \$10. I buy it when the underlying ...
2
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2answers
48 views

We see stocks outperforming things like bonds in the long run (past 100 years), but could this be an artifact of that particular 100 year timeline?

When looking at historical return patterns for investments, one can clearly see the stellar performance of equities over the long haul. That being said, we know that we can center in on certain 20-25 ...
3
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0answers
28 views

Have there been any structural changes in the market that would lead the indexes to be trading so high?

If you look at this graph of the SnP500: You will see that it is trading at levels higher than pre 08 or 99. What systemic structural changes in the market have led it to be trading so high? I think ...
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1answer
28 views

Changes to lookup code/symbols on the NASDAQ?

I'm not entirely sure if I've asked the right question, but does anyone know why certain symbols (I assume they are the symbols) change on NASDAQ? In particular I'm wanting to keep a track of the ...
4
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1answer
628 views

Demand Curves for Stocks

i am currently working on a paper on demand curves for stocks and have some questions. I've read that many models (CAPM, APT, Modigliani-Miller theorem) assume demand curves for stocks to be flat. Can ...
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2answers
90 views

Should I cheer for the bear or bull?

In Australia, ~10% of our salary goes into a compulsory retirement savings scheme. I have chosen the default option for young people, which involves a relatively balanced split between stocks, ...
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2answers
250 views

UK stock historical data

Where can I find UK stock data over the last 70-80 years? Preferably adjusted to to the inflation.
2
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1answer
213 views

Bond market vs stock market during crisis

Why does bond market not change as much as the stock market during financial crisis? On the picture we see the development of the two markets
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2answers
117 views

Why do banks and stock exchanges close/have fixed hours?

Banks and stock exchanges all around the world seem to adhere to quite a strict regime of 9-5, Monday - Friday, in the countries local time. This can have the effect of where an event that happens ...
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3answers
120 views

Why does the stock price of listed firm matter for that firm?

As the title hints, why would the stock price matter for a firm? Which are -in rough terms- the channels that a firm's stock price influence it?
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4answers
891 views

Intrinsic value of non-voting shares which don't pay dividends

What is the intrinsic value of a company's non-voting stock shares which don't pay dividends? My understanding is stock ownership has value in the form of controlling the company or receiving a ...
1
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1answer
201 views

Historical returns for popular American funds over 20-30 years?

I have seen charts like this one showing the return for the past 100+ years cited as evidence why one should invest in stocks for their retirement. I don't disagree with that, but realistically, ...
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0answers
58 views

Exponential Moving Average smoothing factor

I learn best my reading about a concept and then trying to implement it using math and a programming language. Right now, I'm trying to implement an Exponential Moving Average indicator, but I'm ...
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0answers
55 views

Invest in stock market around the world [closed]

Hi i like to invest in the stock market around the world does it require to have a citizenship in that country is there any specific amount to invest in it with a deadlock period how can i track my ...