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Stock market
400-year evolution of global stock markets (and capital markets in general) A stock market, equity market or share market is the aggregation of buyers

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@media all and (max-width:720px){.mw-parser-output .tmulti>.thumbinner{width:100%!important;max-width:none!important}.mw-parser-output .tmulti .tsingle{float:none!important;max-width:none!important;width:100%!important;text-align:center}}A 400-year evolution of global stock markets (and capital markets in general)Courtyard of the Amsterdam Stock Exchange (Beurs van Hendrick de Keyser in Dutch), the foremost centre of global securities markets in the 17th century.The trading floor of the New York Stock Exchange (NYSE) in the blooming era of Internet.

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.

  • 1 Size of the market
  • 2 Stock exchange
  • 3 Trade
  • 4 Market participant
    • 4.1 Trends in market participation
      • 4.1.1 Indirect vs. direct investment
      • 4.1.2 Participation by income and wealth strata
      • 4.1.3 Participation by head of household race and gender
      • 4.1.4 Determinants and possible explanations of stock market participation
  • 5 History
    • 5.1 Early history
    • 5.2 Birth of formal stock markets
  • 6 Importance
    • 6.1 Function and purpose
    • 6.2 Relation to the modern financial system
    • 6.3 United States S&P stock market returns
    • 6.4 Behavior of the stock market
    • 6.5 Irrational behavior
    • 6.6 Crashes
    • 6.7 Stock market prediction
  • 7 Stock market index
  • 8 Derivative instruments
  • 9 Leveraged strategies
    • 9.1 Short selling
    • 9.2 Margin buying
  • 10 New issuance
  • 11 ASX Share Market Game
  • 12 Investment strategies
  • 13 Taxation
  • 14 See also
  • 15 Notes
  • 16 References
  • 17 Further reading
  • 18 External links
Size of the market

Stocks are categorised in various ways. One way is by the country where the company is domiciled. For example, Nestlé and Novartis are domiciled in Switzerland, so they may be considered as part of the Swiss stock market, although their stock may also be traded on exchanges in other countries, for example, as American depository receipts (ADRs) on U.S. stock markets.

As of mid 2017, the size of the world stock market (total market capitalisation) was about US$76.3 trillion.[1] By country, the largest market was the United States (about 34%), followed by Japan (about 6%) and the United Kingdom (about 6%).[2] These numbers increased in 2013.[3]

As of 2015, there are a total of 60 stock exchanges in the world with a total market capitalization of $69 trillion. Of these, there are 16 exchanges with a market capitalization of $1 trillion or more, and they account for 87% of global market capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are based in one of three continents: North America, Europe and Asia.[4]

Stock exchange Main article: Stock exchange

A stock exchange is an exchange (or bourse)[note 1] where stock brokers and traders can buy and sell shares of stock, bonds, and other securities. Many large companies have their stocks listed on a stock exchange. This makes the stock more liquid and thus more attractive to many investors. The exchange may also act as a guarantor of settlement. Other stocks may be traded "over the counter" (OTC), that is, through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors.[7]

Stock exchanges may also cover other types of securities, such as fixed interest securities (bonds) or (less frequently) derivatives which are more likely to be traded OTC.

Trade The New York Stock Exchange The London Stock Exchange

Trade in stock markets means the transfer for money of a stock or security from a seller to a buyer. This requires these two parties to agree on a price. Equities (stocks or shares) confer an ownership interest in a particular company.

Participants in the stock market range from small individual stock investors to larger trader investors, who can be based anywhere in the world, and may include banks, insurance companies, pension funds and hedge funds. Their buy or sell orders may be executed on their behalf by a stock exchange trader.

Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This method is used in some stock exchanges and commodity exchanges, and involves traders shouting bid and offer prices. The other type of stock exchange has a network of computers where trades are made electronically. An example of such an exchange is the NASDAQ.

A potential buyer bids a specific price for a stock, and a potential seller asks a specific price for the same stock. Buying or selling at the market means you will accept any ask price or bid price for the stock. When the bid and ask prices match, a sale takes place, on a first-come, first-served basis if there are multiple bidders or askers at a given price.

The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace. The exchanges provide real-time trading information on the listed securities, facilitating price discovery.

The New York Stock Exchange (NYSE) is a physical exchange, with a hybrid market for placing orders electronically from any location as well as on the trading floor. Orders executed on the trading floor enter by way of exchange members and flow down to a floor broker, who submits the order electronically to the floor trading post for the Designated Market Maker ("DMM") for that stock to trade the order. The DMM's job is to maintain a two-sided market, making orders to buy and sell the security when there are no other buyers or sellers. If a spread exists, no trade immediately takes place – in this case the DMM may use their own resources (money or stock) to close the difference. Once a trade has been made, the details are reported on the "tape" and sent back to the brokerage firm, which then notifies the investor who placed the order. Computers play an important role, especially for program trading.

The NASDAQ is a virtual exchange, where all of the trading is done over a computer network. The process is similar to the New York Stock Exchange. One or more NASDAQ market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock.

The Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was automated in the late 1980s. Prior to the 1980s, it consisted of an open outcry exchange. Stockbrokers met on the trading floor of the Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching process was fully automated.

People trading stock will prefer to trade on the most popular exchange since this gives the largest number of potential counterparties (buyers for a seller, sellers for a buyer) and probably the best price. However, there have always been alternatives such as brokers trying to bring parties together to trade outside the exchange. Some third markets that were popular are Instinet, and later Island and Archipelago (the latter two have since been acquired by Nasdaq and NYSE, respectively). One advantage is that this avoids the commissions of the exchange. However, it also has problems such as adverse selection.[8] Financial regulators are probing dark pools.[9][10]

Market participant The offices of Bursa Malaysia, Malaysia's national stock exchange (known before demutualization as Kuala Lumpur Stock Exchange)

Market participants include individual retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares. Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors.[11]

A few decades ago, most buyers and sellers were individual investors, such as wealthy businessmen, usually with long family histories to particular corporations. Over time, markets have become more "institutionalized"; buyers and sellers are largely institutions (e.g., pension funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds, investor groups, banks and various other financial institutions).

The rise of the institutional investor has brought with it some improvements in market operations. There has been a gradual tendency for "fixed" (and exorbitant) fees being reduced for all investors, partly from falling administration costs but also assisted by large institutions challenging brokers' oligopolistic approach to setting standardised fees.[citation needed] A current trend in stock market investments includes the decrease in fees due to computerized asset management termed Robo Advisers within the industry. Automation has decreased portfolio management costs by lowering the cost associated with investing as a whole.

Trends in market participation

Stock market participation refers to the number of agents who buy and sell equity backed securities either directly or indirectly in a financial exchange. Participants are generally subdivided into three distinct sectors; households, institutions, and foreign traders. Direct participation occurs when any of the above entities buys or sells securities on its own behalf on an exchange. Indirect participation occurs when an institutional investor exchanges a stock on behalf of an individual or household. Indirect investment occurs in the form of pooled investment accounts, retirement accounts, and other managed financial accounts.

Indirect vs. direct investment

The total value of equity-backed securities in the United States rose over 600% in the 25 years between 1989 and 2012 as market capitalization expanded from $2,790 billion to $18,668 billion.[12] Direct ownership of stock by individuals rose slightly from 17.8% in 1992 to 17.9% in 2007, with the median value of these holdings rising from $14,778 to $17,000.[13][14] Indirect participation in the form of retirement accounts rose from 39.3% in 1992 to 52.6% in 2007, with the median value of these accounts more than doubling from $22,000 to $45,000 in that time.[13][14] Rydqvist, Spizman, and Strebulaev attribute the differential growth in direct and indirect holdings to differences in the way each are taxed in the United States. Investments in pension funds and 401ks, the two most common vehicles of indirect participation, are taxed only when funds are withdrawn from the accounts. Conversely, the money used to directly purchase stock is subject to taxation as are any dividends or capital gains they generate for the holder. In this way the current tax code incentivizes individuals to invest indirectly.[15]

Participation by income and wealth strata

Rates of participation and the value of holdings differs significantly across strata of income. In the bottom quintile of income, 5.5% of households directly own stock and 10.7% hold stocks indirectly in the form of retirement accounts.[14] The top decile of income has a direct participation rate of 47.5% and an indirect participation rate in the form of retirement accounts of 89.6%.[14] The median value of directly owned stock in the bottom quintile of income is $4,000 and is $78,600 in the top decile of income as of 2007.[16] The median value of indirectly held stock in the form of retirement accounts for the same two groups in the same year is $6,300 and $214,800 respectively.[16] Since the Great Recession of 2008 households in the bottom half of the income distribution have lessened their participation rate both directly and indirectly from 53.2% in 2007 to 48.8% in 2013, while over the same time period households in the top decile of the income distribution slightly increased participation 91.7% to 92.1%.[17] The mean value of direct and indirect holdings at the bottom half of the income distribution moved slightly downward from $53,800 in 2007 to $53,600 in 2013.[17] In the top decile, mean value of all holdings fell from $982,000 to $969,300 in the same time.[17] The mean value of all stock holdings across the entire income distribution is valued at $269,900 as of 2013.[17]

Participation by head of household race and gender

The racial composition of stock market ownership shows households headed by whites are nearly four and six times as likely to directly own stocks than households headed by blacks and Hispanics respectively. As of 2011 the national rate of direct participation was 19.6%, for white households the participation rate was 24.5%, for black households it was 6.4% and for Hispanic households it was 4.3% Indirect participation in the form of 401k ownership shows a similar pattern with a national participation rate of 42.1%, a rate of 46.4% for white households, 31.7% for black households, and 25.8% for Hispanic households. Households headed by married couples participated at rates above the national averages with 25.6% participating directly and 53.4% participating indirectly through a retirement account. 14.7% of households headed by men participated in the market directly and 33.4% owned stock through a retirement account. 12.6% of female headed households directly owned stock and 28.7% owned stock indirectly.[14]

Determinants and possible explanations of stock market participation

In a 2003 paper by Vissing-Jørgensen attempts to explain disproportionate rates of participation along wealth and income groups as a function of fixed costs associated with investing. Her research concludes that a fixed cost of $200 per year is sufficient to explain why nearly half of all U.S. households do not participate in the market.[18] Participation rates have been shown to strongly correlate with education levels, promoting the hypothesis that information and transaction costs of market participation are better absorbed by more educated households. Behavioral economists Harrison Hong, Jeffrey Kubik and Jeremy Stein suggest that sociability and participation rates of communities have a statistically significant impact on an individual’s decision to participate in the market. Their research indicates that social individuals living in states with higher than average participation rates are 5% more likely to participate than individuals that do not share those characteristics.[19] This phenomenon also explained in cost terms. Knowledge of market functioning diffuses through communities and consequently lowers transaction costs associated with investing.

History The term bourse is derived from the 13th-century inn named "Huis ter Beurze" (center) in Bruges. From predominantly Dutch-speaking cities of the Low Countries (like Bruges and Antwerpt), the term 'beurs' spread to other European states where it was corrupted into 'bourse', 'borsa', 'bolsa', 'börse', etc. Early history

In 12th-century France, the courretiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers. A common misbelief[citation needed] is that, in late 13th-century Bruges, commodity traders gathered inside the house of a man called Van der Beurze, and in 1409 they became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting, but actually, the family Van der Beurze had a building in Antwerp where those gatherings occurred;[20] the Van der Beurze had Antwerp, as most of the merchants of that period, as their primary place for trading. The idea quickly spread around Flanders and neighboring countries and "Beurzen" soon opened in Ghent and Rotterdam.

In the middle of the 13th century, Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city-states not ruled by a duke but a council of influential citizens. Italian companies were also the first to issue shares. Companies in England and the Low Countries followed in the 16th century.

Birth of formal stock markets See also: Economic history of the Dutch Republic, Financial history of the Dutch Republic, and Dutch East India Company Replica of an East Indiaman of the Dutch East India Company/United East Indies Company (VOC). The Dutch East India Company was the first corporation to be ever actually listed on an official stock exchange. In 1611, the world's first stock exchange (in its modern sense) was launched by the VOC in Amsterdam. In Robert Shiller's own words, the VOC was "the first real important stock" in the history of finance.[21] One of the oldest known stock certificates, issued by the VOC chamber of Enkhuizen, dated 9 Sep 1606.[22][23][24][25] The first formal stock market in its modern sense – as one of the indispensable elements of modern capitalism[26] – was a pioneering innovation by the VOC managers and shareholders in the early 1600s.[27][28] A 17th-century engraving depicting the Amsterdam Stock Exchange (Amsterdam's old bourse, a.k.a. Beurs van Hendrick de Keyser in Dutch), built by Hendrick de Keyser (c. 1612). The Amsterdam Stock Exchange was the world's first official (formal) stock exchange when it began trading the VOC's freely transferable securities, including bonds and shares of stock.[29] Courtyard of the Amsterdam Stock Exchange (Beurs van Hendrick de Keyser) by Emanuel de Witte, 1653. The Amsterdam Stock Exchange is said to have been the first stock exchange to introduce continuous trade in the early 17th century. The process of buying and selling the VOC's shares, on the Amsterdam Stock Exchange, became the basis of the world's first official (formal) stock market.[30][31] Established in 1875, the Bombay Stock Exchange is Asia's first stock exchange. “ The stock market — the daytime adventure serial of the well-to-do — would not be the stock market if it did not have its ups and downs. (...) And it has many other distinctive characteristics. Apart from the economic advantages and disadvantages of stock exchanges — the advantage that they provide a free flow of capital to finance industrial expansion, for instance, and the disadvantage that they provide an all too convenient way for the unlucky, the imprudent, and the gullible to lose their money — their development has created a whole pattern of social behavior, complete with customs, language, and predictable responses to given events. What is truly extraordinary is the speed with which this pattern emerged full blown following the establishment, in 1611, of the world's first important stock exchange — a roofless courtyard in Amsterdam — and the degree to which it persists (with variations, it is true) on the New York Stock Exchange in the nineteen-sixties. Present-day stock trading in the United States — a bewilderingly vast enterprise, involving millions of miles of private telegraph wires, computers that can read and copy the Manhattan Telephone Directory in three minutes, and over twenty million stockholder participants — would seem to be a far cry from a handful of seventeenth-century Dutchmen haggling in the rain. But the field marks are much the same. The first stock exchange was, inadvertently, a laboratory in which new human reactions were revealed. By the same token, the New York Stock Exchange is also a sociological test tube, forever contributing to the human species' self-understanding. The behaviour of the pioneering Dutch stock traders is ably documented in a book entitled “Confusion of Confusions,” written by a plunger on the Amsterdam market named Joseph de la Vega; originally published in 1688, (...) ” — John Brooks, in “Business Adventures” (1968)[32]

In the 17th and 18th centuries, the Dutch pioneered several financial innovations that helped lay the foundations of the modern financial system.[33][34][35][36] While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fully fledged capital market: the stock market.[37] In the early 1600s the Dutch East India Company (VOC) became the first company in history to issue bonds and shares of stock to the general public.[38] As Edward Stringham (2015) notes, "companies with transferable shares date back to classical Rome, but these were usually not enduring endeavors and no considerable secondary market existed (Neal, 1997, p. 61)."[39] The Dutch East India Company (founded in the year of 1602) was also the first joint-stock company to get a fixed capital stock and as a result, continuous trade in company stock occurred on the Amsterdam Exchange. Soon thereafter, a lively trade in various derivatives, among which options and repos, emerged on the Amsterdam market. Dutch traders also pioneered short selling – a practice which was banned by the Dutch authorities as early as 1610.[40] Amsterdam-based businessman Joseph de la Vega's Confusion de Confusiones (1688)[41] was the earliest known book about stock trading and first book on the inner workings of the stock market (including the stock exchange).

There are now stock markets in virtually every developed and most developing economies, with the world's largest markets being in the United States, United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the Netherlands.[42]


As the Austrian School economist Ludwig von Mises noted, "A stock market is crucial to the existence of capitalism and private property. For it means that there is a functioning market in the exchange of private titles to the means of production. There can be no genuine private ownership of capital without a stock market: there can be no true socialism if such a market is allowed to exist."[43]

Function and purpose

The stock market is one of the most important ways for companies to raise money, along with debt markets which are generally more imposing but do not trade publicly.[44] This allows businesses to be publicly traded, and raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors enables their holders to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as property and other immoveable assets. Some companies actively increase liquidity by trading in their own shares.[45][46]

History has shown that the price of stocks and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. The stock market is often considered the primary indicator of a country's economic strength and development.[47]

Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'être of central banks.[48]

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.[49]

The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased prosperity, although some controversy exists as to whether the optimal financial system is bank-based or market-based.[50]

Recent events such as the Global Financial Crisis have prompted a heightened degree of scrutiny of the impact of the structure of stock markets[51][52] (called market microstructure), in particular to the stability of the financial system and the transmission of systemic risk.[53]

Relation to the modern financial system

The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing, flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations. The general public interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process.

Statistics show that in recent decades, shares have made up an increasingly large proportion of households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and other very liquid assets with little risk made up almost 60 percent of households' financial wealth, compared to less than 20 percent in the 2000s. The major part of this adjustment is that financial portfolios have gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals, e.g., pension funds, mutual funds, hedge funds, insurance investment of premiums, etc.

The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies are to be found in other developed countries. In all developed economic systems, such as the European Union, the United States, Japan and other developed nations, the trend has been the same: saving has moved away from traditional (government insured) "bank deposits to more risky securities of one sort or another".

A second transformation is the move to electronic trading to replace human trading of listed securities.[52]

United States S&P stock market returns

(assumes 2% annual dividend)

Years to December 31, 2012 Average Annual Return
 %[citation needed][clarification needed] Average Compounded
Annual Return
 %[citation needed][clarification needed] 1 15.5 15.5 3 10.9 11.6 5 4.3 10.1 10 8.8 7.3 15 6.5 5.9 20 10.0 6.4 30 11.6 7.3 40 10.1 8.0 50 10.0 8.1 60 10.5 8.2

Compared to Other Asset Classes Over the long term, investing in a well diversified portfolio of stocks such as an S&P 500 Index outperforms other investment vehicles such as Treasury Bills and Bonds, with the S&P 500 having a geometric annual average of 9.55% from 1928 to 2013.[54]

Behavior of the stock market NASDAQ in Times Square, New York City

Investors may temporarily move financial prices away from market equilibrium. Over-reactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. Economists continue to debate whether financial markets are generally efficient.

According to one interpretation of the efficient-market hypothesis (EMH), only changes in fundamental factors, such as the outlook for margins, profits or dividends, ought to affect share prices beyond the short term, where random 'noise' in the system may prevail. The 'hard' efficient-market hypothesis does not explain the cause of events such as the crash in 1987, when the Dow Jones Industrial Average plummeted 22.6 percent—the largest-ever one-day fall in the United States.[55]

This event demonstrated that share prices can fall dramatically even though no generally agreed upon definite cause has been found: a thorough search failed to detect any 'reasonable' development that might have accounted for the crash. (Note that such events are predicted to occur strictly by chance, although very rarely.) It seems also to be the case more generally that many price movements (beyond that which are predicted to occur 'randomly') are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period seems to confirm this.[55]

A 'soft' EMH has emerged which does not require that prices remain at or near equilibrium, but only that market participants not be able to systematically profit from any momentary market 'inefficiencies'. Moreover, while EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer. Various explanations for such large and apparently non-random price movements have been promulgated. For instance, some research has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and value at risk limits, theoretically could cause financial markets to overreact. But the best explanation seems to be that the distribution of stock market prices is non-Gaussian[56] (in which case EMH, in any of its current forms, would not be strictly applicable).[57][58]

Other research has shown that psychological factors may result in exaggerated (statistically anomalous) stock price movements (contrary to EMH which assumes such behaviors 'cancel out'). Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise, e.g. seeing familiar shapes in clouds or ink blots. In the present context this means that a succession of good news items about a company may lead investors to overreact positively, driving the price up. A period of good returns also boosts the investors' self-confidence, reducing their (psychological) risk threshold.[59]

Another phenomenon—also from psychology—that works against an objective assessment is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which one may be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group.

In one paper the authors draw an analogy with gambling.[60] In normal times the market behaves like a game of roulette; the probabilities are known and largely independent of the investment decisions of the different players. In times of market stress, however, the game becomes more like poker (herding behavior takes over). The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically.

In the period running up to the 1987 crash, less than 1 percent of the analyst's recommendations had been to sell (and even during the 2000–2002 bear market, the average did not rise above 5%). In the run-up to 2000, the media amplified the general euphoria, with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market.[citation needed]

Stock markets play an essential role in growing industries that ultimately affect the economy through transferring available funds from units that have excess funds (savings) to those who are suffering from funds deficit (borrowings) (Padhi and Naik, 2012). In other words, capital markets facilitate funds movement between the above-mentioned units. This process leads to the enhancement of available financial resources which in turn affects the economic growth positively. Moreover, both economic and financial theories argue that stock prices are affected by macroeconomic trends.[citation needed]

Many different academic researchers have stated companies with low P/E ratios and smaller sized companies have a tendency to outperform the market. Research carried out states mid-sized companies outperform large cap companies and smaller companies have higher returns historically.

Irrational behavior

Sometimes, the market seems to react irrationally to economic or financial news, even if that news is likely to have no real effect on the fundamental value of securities itself.[61] However, this market behaviour may be more apparent than real, since often such news was anticipated, and a counterreaction may occur if the news is better (or worse) than expected. Therefore, the stock market may be swayed in either direction by press releases, rumors, euphoria and mass panic.

Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market behavior difficult to predict. Emotions can drive prices up and down, people are generally not as rational as they think, and the reasons for buying and selling are generally accepted.

Behaviorists argue that investors often behave irrationally when making investment decisions thereby incorrectly pricing securities, which causes market inefficiencies, which, in turn, are opportunities to make money.[62] However, the whole notion of EMH is that these non-rational reactions to information cancel out, leaving the prices of stocks rationally determined.

The Dow Jones Industrial Average biggest gain in one day was 936.42 points or 11%.[63]

Crashes Main article: Stock market crash Further information: List of stock market crashes Robert Shiller's plot of the S&P Composite Real Price Index, Earnings, Dividends, and Interest Rates, from Irrational Exuberance, 2d ed.[64] In the preface to this edition, Shiller warns, "The stock market has not come down to historical levels: the price-earnings ratio as I define it in this book is still, at this writing , in the mid-20s, far higher than the historical average... People still place too much confidence in the markets and have too strong a belief that paying attention to the gyrations in their investments will someday make them rich, and so they do not make conservative preparations for possible bad outcomes." Price-Earnings ratios as a predictor of twenty-year returns based upon the plot by Robert Shiller (Figure 10.1,[64] source). The horizontal axis shows the real price-earnings ratio of the S&P Composite Stock Price Index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earnings). The vertical axis shows the geometric average real annual return on investing in the S&P Composite Stock Price Index, reinvesting dividends, and selling twenty years later. Data from different twenty-year periods is color-coded as shown in the key. See also ten-year returns. Shiller states that this plot "confirms that long-term investors—investors who commit their money to an investment for ten full years—did do well when prices were low relative to earnings at the beginning of the ten years. Long-term investors would be well advised, individually, to lower their exposure to the stock market when it is high, as it has been recently, and get into the market when it is low."[64]

A stock market crash is often defined as a sharp dip in share prices of stocks listed on the stock exchanges. In parallel with various economic factors, a reason for stock market crashes is also due to panic and investing public's loss of confidence. Often, stock market crashes end speculative economic bubbles.

There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth destruction on a massive scale. An increasing number of people are involved in the stock market, especially since the social security and retirement plans are being increasingly privatized and linked to stocks and bonds and other elements of the market. There have been a number of famous stock market crashes like the Wall Street Crash of 1929, the stock market crash of 1973–4, the Black Monday of 1987, the Dot-com bubble of 2000, and the Stock Market Crash of 2008.

One of the most famous stock market crashes started October 24, 1929, on Black Thursday. The Dow Jones Industrial Average lost 50% during this stock market crash. It was the beginning of the Great Depression. Another famous crash took place on October 19, 1987 – Black Monday. The crash began in Hong Kong and quickly spread around the world.

By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%, Spain 31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. Black Monday itself was the largest one-day percentage decline in stock market history – the Dow Jones fell by 22.6% in a day. The names "Black Monday" and "Black Tuesday" are also used for October 28–29, 1929, which followed Terrible Thursday—the starting day of the stock market crash in 1929.

The crash in 1987 raised some puzzles – main news and events did not predict the catastrophe and visible reasons for the collapse were not identified. This event raised questions about many important assumptions of modern economics, namely, the theory of rational human conduct, the theory of market equilibrium and the efficient-market hypothesis. For some time after the crash, trading in stock exchanges worldwide was halted, since the exchange computers did not perform well owing to enormous quantity of trades being received at one time. This halt in trading allowed the Federal Reserve System and central banks of other countries to take measures to control the spreading of worldwide financial crisis. In the United States the SEC introduced several new measures of control into the stock market in an attempt to prevent a re-occurrence of the events of Black Monday.

Since the early 1990s, many of the largest exchanges have adopted electronic 'matching engines' to bring together buyers and sellers, replacing the open outcry system. Electronic trading now accounts for the majority of trading in many developed countries. Computer systems were upgraded in the stock exchanges to handle larger trading volumes in a more accurate and controlled manner. The SEC modified the margin requirements in an attempt to lower the volatility of common stocks, stock options and the futures market. The New York Stock Exchange and the Chicago Mercantile Exchange introduced the concept of a circuit breaker. The circuit breaker halts trading if the Dow declines a prescribed number of points for a prescribed amount of time. In February 2012, the Investment Industry Regulatory Organization of Canada (IIROC) introduced single-stock circuit breakers.[65]

  • New York Stock Exchange (NYSE) circuit breakers[66]
% drop time of drop close trading for 10  before 2 pm one hour halt 10  2 pm – 2:30 pm half-hour halt 10  after 2:30 pm market stays open 20  before 1 pm halt for two hours 20  1 pm – 2 pm halt for one hour 20  after 2 pm close for the day 30  any time during day close for the day Stock market prediction Main article: Stock market prediction

Tobias Preis and his colleagues Helen Susannah Moat and H. Eugene Stanley introduced a method to identify online precursors for stock market moves, using trading strategies based on search volume data provided by Google Trends.[67] Their analysis of Google search volume for 98 terms of varying financial relevance suggests that increases in search volume for financially relevant search terms tend to precede large losses in financial markets.[68][69]

Stock market index Main article: Stock market index

The movements of the prices in a market or section of a market are captured in price indices called stock market indices, of which there are many, e.g., the S&P, the FTSE and the Euronext indices. Such indices are usually market capitalization weighted, with the weights reflecting the contribution of the stock to the index. The constituents of the index are reviewed frequently to include/exclude stocks in order to reflect the changing business environment.

Derivative instruments Main article: Derivative (finance)

Financial innovation has brought many new financial instruments whose pay-offs or values depend on the prices of stocks. Some examples are exchange-traded funds (ETFs), stock index and stock options, equity swaps, single-stock futures, and stock index futures. These last two may be traded on futures exchanges (which are distinct from stock exchanges—their history traces back to commodity futures exchanges), or traded over-the-counter. As all of these products are only derived from stocks, they are sometimes considered to be traded in a (hypothetical) derivatives market, rather than the (hypothetical) stock market.

Leveraged strategies

Stock that a trader does not actually own may be traded using short selling; margin buying may be used to purchase stock with borrowed funds; or, derivatives may be used to control large blocks of stocks for a much smaller amount of money than would be required by outright purchase or sales.

Short selling Main article: Short selling

In short selling, the trader borrows stock (usually from his brokerage which holds its clients' shares or its own shares on account to lend to short sellers) then sells it on the market, betting that the price will fall. The trader eventually buys back the stock, making money if the price fell in the meantime and losing money if it rose. Exiting a short position by buying back the stock is called "covering." This strategy may also be used by unscrupulous traders in illiquid or thinly traded markets to artificially lower the price of a stock. Hence most markets either prevent short selling or place restrictions on when and how a short sale can occur. The practice of naked shorting is illegal in most (but not all) stock markets.

Margin buying Main article: margin buying

In margin buying, the trader borrows money (at interest) to buy a stock and hopes for it to rise. Most industrialized countries have regulations that require that if the borrowing is based on collateral from other stocks the trader owns outright, it can be a maximum of a certain percentage of those other stocks' value. In the United States, the margin requirements have been 50% for many years (that is, if you want to make a $1000 investment, you need to put up $500, and there is often a maintenance margin below the $500).

A margin call is made if the total value of the investor's account cannot support the loss of the trade. (Upon a decline in the value of the margined securities additional funds may be required to maintain the account's equity, and with or without notice the margined security or any others within the account may be sold by the brokerage to protect its loan position. The investor is responsible for any shortfall following such forced sales.)

Regulation of margin requirements (by the Federal Reserve) was implemented after the Crash of 1929. Before that, speculators typically only needed to put up as little as 10 percent (or even less) of the total investment represented by the stocks purchased. Other rules may include the prohibition of free-riding: putting in an order to buy stocks without paying initially (there is normally a three-day grace period for delivery of the stock), but then selling them (before the three-days are up) and using part of the proceeds to make the original payment (assuming that the value of the stocks has not declined in the interim).

New issuance Main article: Thomson Reuters league tables

Global issuance of equity and equity-related instruments totaled $505 billion in 2004, a 29.8% increase over the $389 billion raised in 2003. Initial public offerings (IPOs) by US issuers increased 221% with 233 offerings that raised $45 billion, and IPOs in Europe, Middle East and Africa (EMEA) increased by 333%, from $9 billion to $39 billion.

ASX Share Market Game

ASX Share Market Game is a platform for Australian school students and beginners to learn about trading stocks. The game is a free service hosted on ASX (Australian Securities Exchange) website.[70] Each year more than 70,000 students enroll in the game. For the vast majority, this is an introduction to stock market investing. Students once enrolled, are given $50,000 of virtual money and can buy and sell up to 20 times a day. The game runs for 10 weeks. Many similar programs are found in secondary educational institutions across the world.

Investment strategies Main article: Investment strategy

There are many different approaches to investing. Many strategies can be classified as either fundamental analysis or technical analysis. Fundamental analysis refers to analyzing companies by their financial statements found in SEC filings, business trends, general economic conditions, etc. Technical analysis studies price actions in markets through the use of charts and quantitative techniques to attempt to forecast price trends regardless of the company's financial prospects. One example of a technical strategy is the Trend following method, used by John W. Henry and Ed Seykota, which uses price patterns and is also rooted in risk control and diversification.

Additionally, many choose to invest via the index method. In this method, one holds a weighted or unweighted portfolio consisting of the entire stock market or some segment of the stock market (such as the S&P 500 or Wilshire 5000). The principal aim of this strategy is to maximize diversification, minimize taxes from too frequent trading, and ride the general trend of the stock market (which, in the U.S., has averaged nearly 10% per year, compounded annually, since World War II).

Responsible investment emphasizes and requires a long term horizon on the basis of fundamental analysis only, avoiding hazards in the expected return of the investment; socially responsible investing is also recommended[by whom?] in all types of investment.

Taxation Main article: Capital gains tax

According to much national or state legislation, a large array of fiscal obligations are taxed for capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market, in particular in the stock exchanges. These fiscal obligations vary from jurisdiction to jurisdiction. Some countries[which?] avoid taxing profits on stocks as the profits are already taxed when companies file returns, but double taxation is common at some level in many countries.

See also
  • Equity crowdfunding
  • List of market opening times
  • List of stock exchanges
  • List of stock market indices
  • Modeling and analysis of financial markets
  • Securities market participants (United States)
  • Securities regulation in the United States
  • Stock market bubble
  • Stock market cycles
  • Stock market data systems
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Further reading .mw-parser-output .refbegin{font-size:90%;margin-bottom:0.5em}.mw-parser-output .refbegin-hanging-indents>ul{list-style-type:none;margin-left:0}.mw-parser-output .refbegin-hanging-indents>ul>li,.mw-parser-output .refbegin-hanging-indents>dl>dd{margin-left:0;padding-left:3.2em;text-indent:-3.2em;list-style:none}.mw-parser-output .refbegin-100{font-size:100%}
  • Hamilton, W. P. (1922). The Stock Market Baraometer. New York: John Wiley & Sons Inc (1998 reprint). ISBN 0-471-24764-2. 
  • Preda, Alex (2009). Framing Finance: The Boundaries of Markets and Modern Capitalism. University of Chicago Press. ISBN 978-0-226-67932-7. 
  • Siegel, Jeremy J. (2008). "Stock Market". In David R. Henderson (ed.). Concise Encyclopedia of Economics (2nd ed.). Indianapolis: Library of Economics and Liberty. ISBN 978-0865976658. OCLC 237794267. CS1 maint: Extra text: editors list (link)
External links Look up stock market in Wiktionary, the free dictionary. Wikiquote has quotations related to: Stock market
  • Stock exchanges at Curlie (based on DMOZ)
  • Stocks investing at Curlie (based on DMOZ)
  • v
  • t
  • e
Financial marketsTypes of markets
  • Primary market
  • Secondary market
  • Third market
  • Fourth market
Types of stocks
  • Common stock
  • Golden share
  • Preferred stock
  • Restricted stock
  • Tracking stock
Share capital
  • Authorised capital
  • Issued shares
  • Shares outstanding
  • Treasury stock
  • Broker-dealer
  • Day trader
  • Floor broker
  • Floor trader
  • Investor
  • Market maker
  • Proprietary trader
  • Quantitative analyst
  • Financial law
  • Regulator
  • Stock trader
  • Electronic communication network
  • List of stock exchanges
    • Trading hours
  • Multilateral trading facility
  • Over-the-counter
Stock valuation
  • Alpha
  • Arbitrage pricing theory
  • Beta
  • Bid–ask spread
  • Book value
  • Capital asset pricing model
  • Capital market line
  • Dividend discount model
  • Dividend yield
  • Earnings per share
  • Earnings yield
  • Net asset value
  • Security characteristic line
  • Security market line
  • T-model
Trading theories
and strategies
  • Algorithmic trading
  • Buy and hold
  • Contrarian investing
  • Day trading
  • Dollar cost averaging
  • Efficient-market hypothesis
  • Fundamental analysis
  • Growth stock
  • Market timing
  • Modern portfolio theory
  • Momentum investing
  • Mosaic theory
  • Pairs trade
  • Post-modern portfolio theory
  • Random walk hypothesis
  • Sector rotation
  • Style investing
  • Swing trading
  • Technical analysis
  • Trend following
  • Value averaging
  • Value investing
Related terms
  • Block trade
  • Cross listing
  • Dark pool
  • Dividend
  • Dual-listed company
  • DuPont analysis
  • Efficient frontier
  • Flight-to-quality
  • Haircut
  • Initial public offering
  • Long
  • Margin
  • Market anomaly
  • Market capitalization
  • Market depth
  • Market manipulation
  • Market trend
  • Mean reversion
  • Momentum
  • Open outcry
  • Position
  • Public float
  • Public offering
  • Rally
  • Returns-based style analysis
  • Reverse stock split
  • Share repurchase
  • Short selling
  • Slippage
  • Speculation
  • Stock dilution
  • Stock market index
  • Stock split
  • Trade
  • Uptick rule
  • Volatility
  • Voting interest
  • Yield
  • v
  • t
  • e
Largest stock exchanges by market capitalization
  1.   New York Stock Exchange
  2.   NASDAQ
  3.   London Stock Exchange
  4.   Japan Exchange Group – Tokyo
  5.   Shanghai
  6.   Hong Kong
  7.   Euronext
  8.   Shenzhen
  9.   Toronto Stock Exchange
  10.   Deutsche Börse
  11.   Bombay Stock Exchange
  12.   National Stock Exchange of India
  13.   SIX Swiss Exchange
  14.   Australian Securities Exchange
  15.   Korea Exchange
  16.   NASDAQ OMX Nordic Exchange
  17.   JSE Limited
  18.   BME Spanish Exchanges
  19.   Taiwan Stock Exchange
  20.   BM&F Bovespa
  21.   Singapore Exchange
  22.   Moscow Exchange
  23.   Stock Exchange of Thailand
  24.   Tadawul
  25.   Indonesia Stock Exchange
  • v
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Stock market crashes17th century
  • Early stock market crashes in the Dutch Republic
18th century
  • The Mississippi Bubble
  • South Sea Bubble of 1720
  • Panic of 1792
  • Panic of 1796–97
19th century
  • Panic of 1819
  • Panic of 1825
  • Panic of 1837
  • Panic of 1847
  • Panic of 1857
  • Black Friday (1869)
  • Panic of 1873
  • Paris Bourse crash of 1882
  • Panic of 1884
  • Encilhamento
  • Panic of 1893
  • Panic of 1896
20th century
  • Panic of 1901
  • Panic of 1907
  • Depression of 1920–21
  • Wall Street Crash of 1929
  • Recession of 1937–38
  • 1971 Brazilian markets crash
  • 1973–74 stock market crash
  • Souk Al-Manakh stock market crash (1982)
  • Japanese asset price bubble (1986–1991)
  • Black Monday (1987)
  • Rio de Janeiro Stock Exchange collapse
  • Friday the 13th mini-crash (1989)
  • 1990s Japanese stock market crash
  • Dot-com bubble (1995–2000)
  • 1997 Asian financial crisis
  • October 27, 1997, mini-crash
  • 1998 Russian financial crisis
21st century
  • Economic effects arising from the September 11 attacks (2001)
  • Stock market downturn of 2002
  • Chinese stock bubble of 2007
  • United States bear market of 2007–09
  • Financial crisis of 2007–08
  • Dubai debt standstill
  • European debt crisis
  • 2010 Flash Crash
  • 2011 Tōhoku earthquake and tsunami (Aftermath)
  • August 2011 stock markets fall
  • 2011 Bangladesh share market scam
  • 2015–16 Chinese stock market turbulence
  • 2015–16 stock market crash
  • 2016 United Kingdom EU referendum (Aftermath)
  • 2018 Cryptocurrency crash
See also: List of stock market crashes and bear markets
  • v
  • t
  • e
Economic, financial and business history of the NetherlandsGeneral
  • Economy of the Netherlands from 1500–1700
  • Economic history of the Netherlands (1500–1815)
  • Economic history of the Dutch Republic
  • Financial history of the Dutch Republic
  • Dutch Financial Revolution (1580s–1700s)
  • Dutch economic miracle (1580s–ca.1700)
  • Early modern industrialization in the Dutch Republic (1580s–1700s)
  • Dutch guilder
  • Amsterdam Entrepôt
  • Tulip mania
  • Whaling in the Netherlands
  • Diamond industry in the Dutch Republic
  • Sugar industry in the Dutch Republic
  • Shipbuilding industry in the Dutch Republic
  • Pulp and paper industry in the Dutch Republic
    • Hollander beater
  • History of the chocolate industry
    • Dutch process chocolate
  • Polder model
Key institutionsPre-1815
  • Amsterdam Stock Exchange (Beurs van Hendrick de Keyser)
  • Bank of Amsterdam (Amsterdamsche Wisselbank)
  • Brabantsche Compagnie
  • Compagnie van Verre
  • Dutch East India Company (VOC)
  • Dutch West India Company (WIC/GWIC)
  • New Netherland Company
  • Noordsche Compagnie
  • De Nederlandsche Bank
  • Philips
  • Fokker
  • KLM
  • Stichting Max Havelaar
Notable business and
financial innovators
  • Louis De Geer
  • Gerard Adriaan Heineken
  • Isaac Le Maire
  • Johan Palmstruch
  • Anton Philips
  • Gerard Philips
  • Nico Roozen
  • Coenraad Johannes van Houten
  • Anthony Fokker
  • Frans van der Hoff
Pioneering innovations
  • Multinational corporation
  • Transnational corporation
  • Public company (publicly traded company, publicly listed company)
  • Megacorporation
  • Corporate finance
  • Central bank
  • Initial public offering (IPO)
  • Stock market
  • Stock exchange
  • Securitization
  • Common stock
  • Corporate bond
  • Perpetual bond
  • Collective investment schemes (investment funds)
  • Dividend (dividend policy)
  • Dutch auction
  • Fairtrade certification
  • Government debt
  • Financial regulation
  • Investment banking
  • Mutual fund
  • Bear raid
  • Short selling (naked short selling)
  • Shareholder activism (activist shareholder)
  • Shareholder revolt (shareholder rebellion)
  • Technical analysis
  • Tontine
  • Dutch disease
  • Economic bubble (speculative bubble)
  • Stock market crash
  • History of capitalism
  • Economic miracle
  • Economic boom
  • Economic growth
  • Global economy
  • International trade
  • International business
  • International financial centre
  • Economic globalization (corporate globalization)
  • Finance capitalism
  • Financial system
  • Financial revolution
Authority control
  • GND: 4130931-5
  • NDL: 00572098

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials)
This classic text is annotated to update Graham's timeless wisdom for today's market conditions... The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham's philosophy of "value investing" -- which shields investors from substantial error and teaches them to develop long-term strategies -- has made The Intelligent Investor the stock market bible ever since its original publication in 1949. Over the years, market developments have proven the wisdom of Graham's strategies. While preserving the integrity of Graham's original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today's market, draws parallels between Graham's examples and today's financial headlines, and gives readers a more thorough understanding of how to apply Graham's principles. Vital and indispensable, this HarperBusiness Essentials edition of The Intelligent Investor is the most important book you will ever read on how to reach your financial goals.

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How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition
How to Make Money in Stocks:  A Winning System in Good Times and Bad, Fourth Edition
THE NATIONAL BESTSELLER! Anyone can learn to invest wisely with this bestselling investment system! Through every type of market, William J. O’Neil’s national bestseller, How to Make Money in Stocks, has shown over 2 million investors the secrets to building wealth. O’Neil’s powerful CAN SLIM® Investing System―a proven 7-step process for minimizing risk and maximizing gains―has influenced generations of investors. Based on a major study of market winners from 1880 to 2009, this expanded edition gives you: Proven techniques for finding winning stocks before they make big price gains Tips on picking the best stocks, mutual funds, and ETFs to maximize your gains 100 new charts to help you spot today’s most profitable trends PLUS strategies to help you avoid the 21 most common investor mistakes! “I dedicated the 2004 Stock Trader’s Almanac to Bill O’Neil: ‘His foresight, innovation, and disciplined approach to stock market investing will influence investors and traders for generations to come.’” ―Yale Hirsch, publisher and editor, Stock Trader’s Almanac and author of Let’s Change the World Inc. “Investor’s Business Daily has provided a quarter-century of great financial journalism and investing strategies.” ―David Callaway, editor-in-chief, MarketWatch “How to Make Money in Stocks is a classic. Any investor serious about making money in the market ought to read it.” ―Larry Kudlow, host, CNBC’s "The Kudlow Report"

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How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
Very few careers can offer you the freedom, flexibility and income that day trading does. As a day trader, you can live and work anywhere in the world. You can decide when to work and when not to work. You only answer to yourself. That is the life of the successful day trader. Many people aspire to it, but very few succeed.In the book, I describe the fundamentals of day trading, explain how day trading is different from other styles of trading and investment, and elaborate on important trading strategies that many traders use every day. I've kept the book short so you can actually finish reading it and not get bored by the middle.For beginner traders, this book gives you an understanding of where to start, how to start, what to expect from day trading, and how to develop your strategy. Simply reading this book, however, will not make you a profitable trader. Profit in trading does not come with reading a book or two or browsing online. It comes with practice, the right tools and software and appropriate ongoing education.Intermediate traders may benefit from the book's extensive overview of some of the classic strategies that the majority of retail traders regularly use with proven success. If you think you are beyond the stage of a novice trader, then you may want to jump ahead and start reading from Chapter 7 for an overview of the most important day trading strategies:ABCD Pattern TradingBull Flag Momentum TradingTop Reversal TradingBottom Reversal TradingMoving Average Trend TradingVWAP TradingSupport and Resistance TradingFor each strategy, I explain:How to find the Stock in Play for tradeWhat indicators I am using on my chartsWhen I enter the tradeWhen I exit the trade (profit taking)What is my stop lossAnd as a purchaser of my book, you are welcome to join our community of day traders at BearBullTraders. You can monitor my screen in real time, watch me trade the strategies explained in his book, and ask questions of me and other traders in our chat room. You can ask us questions. Practical, hands-on knowledge. That's How to Day Trade for a Living.I invite you to join me in the world of day trading. I'm a real person who you can connect with. I love what I do. You can follow my blog post under Author Updates on my Author page on Amazon. You'll see I lose some days. You can read the reviews of my book. I know you will learn much about day trading and the stock market from studying my book.

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Stock Investing For Dummies (For Dummies (Business & Personal Finance))
Stock Investing For Dummies (For Dummies (Business & Personal Finance))
Grow your stock investments in today's changing environment Updated with new and revised material to reflect the current market, this new edition of Stock Investing For Dummies gives you proven strategies for selecting and managing profitable investments. no matter what the conditions. You'll find out how to navigate the new economic landscape and choose the right stock for different situations—with real-world examples that show you how to maximize your portfolio. The economic and global events affecting stock investors have been dramatic and present new challenges and opportunities for investors and money managers at every level. With the help of this guide, you'll quickly and easily navigate an ever-changing stock market with plain-English tips and information on ETFs, new rules, exchanges, and investment vehicles, as well as the latest information on the European debt crisis. Incorporate stocks into your investment portfolio Understand and capitalize on current market conditions Balance risk and reward Explore new investment opportunities Stock Investing For Dummies is essential reading for anyone looking for trusted, comprehensive guidance to ensure their investments grow.

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Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins―Your Essential Guide to the Stock Market (Adams 101)
Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins―Your Essential Guide to the Stock Market (Adams 101)
All you need to know about buying and selling stocks! Too often, textbooks turn the noteworthy details of investing into tedious discourse that would put even a hedge fund manager to sleep. Stock Market 101 cuts out the boring explanations of basic investing, and instead provides hands-on lessons that keep you engaged as you learn how to build a portfolio and expand your wealth. From bull markets to bear markets to sideways markets, this primer is packed with hundreds of entertaining tidbits and concepts that you won't be able to get anywhere else. So whether you're looking to master the major principles of stock market investing or just want to learn more about how the market shifts over time, Stock Market 101 has all the answers--even the ones you didn't know you were looking for.

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Investing QuickStart Guide: The Simplified Beginner's Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
Investing QuickStart Guide: The Simplified Beginner's Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
THE ULTIMATE BEGINNER'S GUIDE TO INVESTING!"An excellent investment book for beginners!" - Amazon Customer"Don’t waste your time with other titles - this is the investing book you want!" - Amazon Customer"Ted Snow really knows his stuff!" - Amazon Customer#1 NEW RELEASE IN STOCK MARKET INVESTING & AMAZON BEST SELLERDo you want to learn how to create real wealth in the stock market?Then you NEED this book. Buy now and start reading today!Do you want to learn how to create passive income and retire early?Then you NEED this book. Buy now and start reading today!Do you want to learn how to day trade stocks and avoid costly mistakes that beginners make?Then you NEED this book. Buy now and start reading today!Do you want to learn how to create financial freedom and live the life you deserve?? Then you NEED this book. Buy now and start reading today!The ONLY investing book that is written by a CFP® practitioner with 30+ years of investment experience helping others to invest wisely to achieve all of their financial goals in life.Best-selling author Ted D. Snow, CFP®, MBA has a knack for making complex ideas clear while endowing his readers with a wealth of powerful new knowledge. Whether you are a newcomer to investing or a veteran looking for a fresh perspective, you will enjoy the unique and practical vision for investing success offered in theInvesting QuickStart Guide. Bringing the wisdom of 30+ years in the finance industry to bear--much to the benefit of novice learners and experienced investors alike. Snow’s intrepid but practical asset-allocation investment philosophy is masterfully communicated and highly appropriate for market newcomers. The key insights of Warren Buffet, Peter Lynch, Burton Malkiel, and James Altucher all play important roles in this seminal investment resource. But unlike most of today’s books on investing, the Investing QuickStart Guide is as simple as it is comprehensive. Perfect For:Companion to The Intelligent Investor!Stock Market Education for Teen & Kids!Beginners with Zero Prior Experience!Experienced Investors who Want to Go to the Next Level!Discover The Secrets to Successfully Investing In:Stocks! (Including Dividend Paying Stocks!)Mutual Funds!ETFS!Bonds!Index Funds!REITSCommodities!You'll Discover:Everything You Need to Know Before You Make Your First Trade!How To Take Advantage Of Opportunities In The Market Without Relying On Guesswork!How to Evaluate and Compare Stocks and Other Securities!How Disciplined Approaches to Investing Can Lead to Early Retirement and Financial Freedom!How National And Global Economic And Geopolitical Factors Can Influence Investment Prospects!This book has been reviewed by The Financial Industry Regulatory Authority (FINRA).*LIFETIME ACCESS TO FREE RESOURCES & INVESTING SUPPORT*:Each book comes with free lifetime access to tons of exclusive online resources to help you become a better investor such as workbooks, cheat sheets and reference guides. You also receive lifetime access to our online coaching community to help you achieve all of your financial goals!*GIVING BACK*: ClydeBank Media proudly supports the non-profit AdoptAClassroom whose mission is to advance equity in K-12 education by supplementing dwindling school funding for vital classroom materials and resources.Scroll Up To The Top Of The Page And Click The Orange "Buy Now" Icon On The Right Side, Right Now!

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