What is the stock market?
Thousands of people who have money in any type of account for their retirement can consider ourselves participating in the Stock market. But have you pondered about the functionality of how this interesting market works? Imagine being at a regular auction, where instead of nice bits such as cars and antiques are being bidded away, think of bits of public companies being auctioned away.
To make a less confusing analogy, think about the role of an auctioneer. The auctioneer’s role is to get the highest and best price for each product. Well, the stock exchanges around the globe kinda operate in the same fashion. The auctioneer role, is called a Market Maker. In a stock sale, there is no stable, set price for stocks, but instead, setting the price is the role of the Market Maker.
The price will fluctuate greatly, because the ying and yang of the market, the buyers and sellers, will bid on either the stock going lower, or higher. Usually when you see a stock price go up, it means that the buy price of a stock has increased. This is vice versa when a stock declines in value.
Now I am sure you have seen visuals on the major news networks of how a stock floor looks. You know, the floor where tons of stark raving mad folks, scream numbers and look at monitors and make trades all day. The trading day starts at 9:30 in the morning Eastern Time, and stops at 4:00 in the afternoon Easter Time. Depending on business news, market forecasts, world events, and a few other things thrown in between, can dictate how much volume a market can have in a day.
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The new Amreican dream2010-04-16 17:39:22 by GeorgeBailey
By Paul R. La Monica, editor at large April 14, 2010: 1:47 PM ET
And guess what? It seems many people are in fact coming to the realization that, for now at least, it makes more sense to rent instead of buy.
Jerry Davis, senior vice president of property operations for UDR (UDR), a Denver-based real estate investment trust (REIT) that owns and manages apartments, said that before the housing market collapsed, about 25% of the company's renters that moved out of apartments did so because they were buying a home.
Now, only about 12% are moving out to purchase a home, and in some of the harder hit real estate markets, such as California, Davis said that fewer than 10% of movers are buying a house of their own.
"Even though prices have come down, you're not...
KEYNESIAN STIMULUS IS TEMPORARY2010-01-04 18:22:38 by superbone
MONTH AFTER MONTH you've been hearing the college educated people on this forum talk about Keynesian monetary and fiscal stimulus and the temporary deficits that are run to recapitalize everyone (yes, FLOODING THE SYSTEM WITH MONEY, RUNNING A DEFICIT)
and like 8-YEAR OLDS WHO RIDE THE SHORT BUS are too lazy to look it up.
I thinks its become a poignant commentary on the depth of 'intellectual curiosity' on the board here.
HERE'S A LINK. READ IT. IT'S BY PAUL KRUGMAN. HE'S A SMART GUY.
"What lies behind the credit squeeze is the combination of reduced trust in and decimated capital at financial institutions. People and institutions, including the financial institutions, don't want to deal with anyone unless they have...
What is the stock market? — Globe and Mail
When you buy stock in a company, you become a part owner. In other words, you buy yourself a share of the company. Most investors buy and sell through stockbrokers. Stockbrokers are trained and registered to sell stock and bonds.
You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits
One Up On Wall Street : How To Use What You Already Know To Make Money In The Market
Book (Simon & Schuster)