Questions tagged [stock-market]

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

Filter by
Sorted by
Tagged with
0
votes
2answers
101 views

Using the Dividend Discount Model when no current dividend exists?

Say a company is doing an IPO and we expect them to start paying dividends in 5 years? I understand how we could use the Dividend Discount Model to predict their stock price 4 years from the IPO. But ...
1
vote
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 ...
2
votes
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 ...
1
vote
0answers
42 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?
1
vote
1answer
38 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 ...
0
votes
2answers
70 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 ...
14
votes
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 ...
6
votes
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 ...
1
vote
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 ...
2
votes
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 ...
0
votes
1answer
426 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 ...
2
votes
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 ...
4
votes
4answers
192 views

What would happen if a company bought back of all of its stock? Would it own 100% of itself?

Companies occasionally own some of their own stock. A company owning its own stock is actually pretty weird when you think about it. If I own 1% of a business's stock (and therefore own 1% of the ...
3
votes
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 ...
2
votes
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 ...
13
votes
5answers
18k views

Does the Federal Reserve buy and sell stocks?

Can the Fed buy and sell stock in publicly traded companies? Is there evidence of this and, wouldn't this behavior drive the price as opposed to actual market forces?
1
vote
1answer
575 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 ...
1
vote
1answer
115 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 ...
1
vote
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 ...
1
vote
1answer
563 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 ...
1
vote
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 ...
5
votes
2answers
405 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 ...
5
votes
1answer
92 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 ...
1
vote
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 ...
2
votes
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 ...
0
votes
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 ...
1
vote
2answers
528 views

Is trading in the commodity futures much more riskier than trading in stock market futures?

My understanding is that the price of a stock at the stock exchange is determined by supply demand mechanics during trading hours, and the price of futures is determined by the price of the underlying ...
4
votes
3answers
337 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 ...
3
votes
0answers
29 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 ...
3
votes
2answers
551 views

Monetary Base vs. Stock price

link: https://research.stlouisfed.org/fred2/graph/?g=3big I have watched this video where he explain this chart. Basically he shows high correlation between Monetary Base and the Stock Market. But I ...
1
vote
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 ...
2
votes
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 ...
8
votes
6answers
497 views

Why do falling oil prices take stocks with it?

The price of oil fell again today and is now below $30/barrel for the first time in 12 years. Along with the fall came most of the US stock markets. If I didn't know any other information except for "...
4
votes
1answer
631 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 ...
1
vote
2answers
91 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, ...
6
votes
2answers
121 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 ...
1
vote
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?
2
votes
1answer
218 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
0
votes
2answers
252 views

UK stock historical data

Where can I find UK stock data over the last 70-80 years? Preferably adjusted to to the inflation.
1
vote
4answers
900 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 ...
9
votes
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 ...
1
vote
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, ...
3
votes
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 ...
7
votes
1answer
232 views

Stock pricing with cross ownership

Cross-ownership is a phenomenon where companies own parts of other companies they do business with. An example: Two companies are now involved in the diamond operation, the mining group Anglo-...
1
vote
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 ...
1
vote
2answers
69 views

The notion of price

Typically in market clearing, the supply and demand (ask and bid) curves meet at a certain point, and the projection of these curves creates a quantity and price. Does this price have a deeper meaning ...
5
votes
2answers
2k views

What would happen if stock markets were open 24 hours?

Suppose you are a broker or a trader, and the stock markets will be open 24 hours a day. What would be the implication for you as a broker in this scenario? I mean: How will your strategies change? ...
2
votes
2answers
2k views

What is the real reason for china's stock market crash (August 2015)?

I have read douzons of explanations and they all basically claim the following: China's stock market continued to boom despite the country's increasingly gloomy economic outlook, and this ...
3
votes
1answer
43 views

Market Value of a publicly traded company

I want to know the market value (market capitalization) of a company on a particular day in the recent past (within the past 5 years). How can I do this, may be with the help of Google Finance or ...
5
votes
3answers
2k views

Why was Modigliani-Miller so relevant and innovative when it came out?

The Modigliani-Miller theorem*, a foundation of modern corporate finance, basically states that, in a no-frictions world, two identical firms have the same enterprise value, regardless of their ...