Factors That Affect The Stock Prices

In order to study how stock prices react to these events, approximate three years of continuous daily stock price are chose, beginning at 17th March 2008 and ending more than three months after the final event at 22nd April 2011. In addition, SHANGHAI Stock Exchange Index (SSE) is adopted as a proxy of the market portfolio.

The stock Market crash was caused because the market was overrated, overbought and dominated. The economic conditions were not helping anyone. The Crash was due to the market opening of 11% or less. Financiers and institutions chipped in with proposals over the market price to stop the panic. Even though the losses on that day were smaller compared to the next two days. Yet, this loss was unreal, as the next Monday, commonly now known as Black Monday the losses were dropping 13% without provoking the margin calls. Afterward, the offers disappeared completely and the market fell again, another 12%. From this point on the market completely fell hitting rock bottom causing horrible things to go wrong. This was one of the factors that lead to the great depression.

The stock market crash of 1929 was a four-day collapse of stock prices and the worst decline in U.S. history. Though there have been more market crashes since, with bigger losses, none have rivaled the panic the country experienced during this time. It destroyed the public’s confidence in Wall Street and helped lead to the Great Depression.

This article showed the influence to the society because people are judging their life choice decision about stock based on their perspective and reputation of President Trump. President Trump may have a bad reputation to many people just because of that doesn't mean you need to be afraid of him. In fact he is a excellent in business world and his reputation about it is huge. This affected my life by showing me that just because President Trump being the new America President doesn't mean I have to not sell my stock because he can make some big changes in the stock market, beside as he have promised, he will also make America great again and from that I can know that what he means is to make America economy great

A Study on S&P 500 Index Stock Return and Volatility using ARIMA and GARCH Modeling

There were multiple reasons why the stock market crashed in 1929, for example, investments were made with borrowed money; overproduction and underconsumption of goods; credit greatly increased; and governmental influence. Firstly, people started to take out money that was borrowed from other people and invest it in stocks. When the stock started to not do so well people were not making money like they had anticipated. When the people who lent the money wanted to collect their loans and people couldn't pay up it lead to downward spiral. Secondly, with the massive improvements in efficiency in industry there slowly became a surplus of goods. However, when the stock market crashed and people began to not buy as many goods leaving businesses with

The day of the stock market crash was a catastrophe.the reason for the stock market to crash was the over bought market.the stock market crash was a result of varios economic im balences and structral failures.And no it has not crashed before.It could have been prevented in 1920 if the companies weren’t selling for profit.

A second probable cause was the great expansion of investment trusts, public utility holding companies, and the amount of margin buying, all of which fueled the purchase of public utility stocks, and drove up their prices. Public utilities, utility holding companies, and investment trusts were all highly levered using large amounts of debt and preferred stock. The third being economic prosperity leading people to believe the market could only grow causing carelessness of people and banks with money investing beyond capable of what they had. People would invest in stocks, banks, and corporation then the banks and corporations would also invest in stocks the stock ended up affecting everyone. International trade declined 30% and nations tried to protect their industries by raising tariffs on imported goods. The Federal Reserve decided not to bail out banks to prove a point for banks not to over invest depositor’s

The Stock Market was a nationwide crisis caused by banks, and was described as the “trigger” to the Depression. In fact, this was mainly because people had bought stocks, these stock values began to go up (Bull market), and buying on margin had encouraged more customers to do the same. I think that this occurred because of the stock market crash, companies laid off workers because they were not selling as many products, and because of bank failures. The funds people were putting in the banks constituted their life savings and once they were lost they were left penniless and homeless. Studies show that during this time their was an increase in the suicide rate.

During this period, the volatility of stock markets, exchange rates, GDP growth and bond markets rise steeply. The main reason for those surge in the stock market is that volatility in the recession is due to effect on leverage. Therefore, most firms in the period accumulate more debt which in turn causes their stocks to be volatile. According to Schewert, he explores and calculates the leverage effect that does occur and tries to explain the 10% rise in uncertainty during the recession period.

Efficient capital market “It was generally believed that securities markets were extremely efficient in reflecting information about the stock market as a whole” (Fama 1970). To extent that when there is new information about stock rise, the news was dispersed immediately and it affects the security 's price at that time.

As indicated by the case study S&P 500 index was use as a measure of the total return for the stock market. Our standard deviation of the total return was used as a one measure of the risk of an individual stock. Also betas for individual stocks are determined by simple linear regression. The variables were: total return for the stock as the dependent variable and independent variable is the total return for the stock. Since the descriptive statistics were a lot, only the necessary data was selected (below table.)

This report aims to apply statistical concepts to a real world business situation. A multiple regression model is applied to the data in order to try and predict the changes in stock price of the selected company, and the goodness of fit of the data to the model is critically analysed by testing the overall model, conducting significance tests of the regression coefficients, coefficient of multiple determination (R² and Adjusted R²). Finally, a prediction is made with a confidence interval estimate in order to analyse if the applied model and data are useful for the

Inflation not only means the decrease in the value of money but it could also mean the increasing prices of essentials such as wheat, milk, meat, clothing, medical services, coffee, electricity, etc. Inflation has two major effects, The effect of inflation on savers and investors who lose purchasing power. Even if they have buried their money in the safest bank in the world, it is becoming less valuable with the passage of time, the other effect of inflation is positive because debtors can pay their debts with money that is less valuable. They will be watching their debt get paid off each year, totally free. (Joshua Kennon)

Common Risk Factors in the Retu rns on Stocks and Bonds Eugene F. Fama Kenneth R. French Journal of Financial Economics 1993 Presenter: 周立軒 Brief Saying… • This paper identifies Five common risk factors in the return on stocks and bonds – Two stock market factors, two bond market factors , one market factor. – The five factors seems to explain all returns in stoc k market and bond market • Except the Low-Grade Bonds  Agenda • • • • • Introduction The Steps of the Experiment Data & Variables