Us Equity Market Essay

In order to succeed in any business, it is extremely important to understand the stock market. In this assignment we were asked to follow the stock market continuously for four months and understand the market. The stock market is a global marketplace, where goods and services are traded in the form of equities.

The market makers play an important role in the trading system as catalysts, particularly for enhancing stock liquidity and, therefore, for promoting long-term growth in the market. In detail, they played two roles as below:

This document is authorized for use only by Yen Ting Chen in FInancial Markets and Institutions taught by Nawal Ahmed Boston University from September 2014 to December 2014.

This accessibility of information and deregulation has encouraged foreign investments, and we can see the surge of new financial products and an increase in financial innovation in the markets today. Stocks can now be dual-listed, traded across markets in two different countries. For example, many large Canadian companies are listed both on the New York Stock Exchange as well as the Toronto Stock Exchange. There are also Brazilian-based companies listed on both the Brazilian and US stock markets. This adds greater liquidity to the companies’ shares traded, and also gives investors more options as to where they can trade.

A new kind of financial investment in the North American markets (Sapp, 2010, p. 4)

So you’re interested in learning about the stock market. Although very intricate, learning about the stock market is not as hard as it seems. While there is a lot more to learn, this short guide will help to get you started. So let’s get into some basics of the stock market, and how it works.

Every weekday from the hours of 10am to 4pm $169 billion dollars on average trades hands from one party to another. It’s the New York Stock Exchange and has been trading stocks since 1817. The stock market has a definite impact on our lives (just ask those who lived during The Great Depression.) It is an institution that has made people unfathomably wealthy, along with impossibly poor. Today the New York Stock Exchange has over 2,300 different companies trading stock valued at just over 16 trillion dollars.

Stock Exchange was formed trading equities auctions style. The market was in good health and around 1930 the traditional way stocks was to research them using fundamental-analysis, which analyzed a company’s health by examining their historical metrics. This changed in 1951, Harry Markowitz applied mathematical concepts to the market, which helped create algorithms that could calculate several different stocks simultaneously. By the early 1970s the markets started moving away from the traditional auctions to Electronic Communication Networks *. Algorithm trading presents series of problems, a few for each side of the playing field, so individuals are not safe playing with them or against them.

The state of the economy today is determined by many factors including overseas trade, employment rate, the needs and wants of consumers and namely, the Stock Market. The Stock Market is nothing more than a global network of organised market places where everyday large sums of money are moved across. As of 2013, over $85 trillion AUD (or €60 trillion) are traded in the Stock Market. This amount of money is more than the cost of all goods and services in the entire world economy. However, this is just a simplified statement. In truth, the Stock Market is a highly complicated concept that can be affected by many external problems or cause its own problems such as a rise and fall in stock prices and financial crises.

In recent years, computerized trading has dramatically altered in financial market. High frequency trading (HFT), a type of algorithmic trading, can make significant profits within microseconds. Increasing competition between securities companies and ever-advancing technology has allowed high frequency trading to dominate global financial market. About 10 to 70 percent of the order volume in stock and derivatives trading are based on HFT. (Lattemann, 2012). There has been considerable debate about whether HFT is advantageous or disadvantageous to financial systems. This essay will evaluate the two positions and attempt to offer solutions to the problems of HFT which are focused on seven impacts: liquidity, volatility, price discovery,

The United States and China are the world's largest investor and utmost contributor to global financial and economic growth by wide margins. The competence of its financial system in allotting capital to asset will be significant to sustain this growth. This paper examines the comparative relations of US and Chinese stock market from the 1980s to the global financial crisis of 2008 and the relative impact of Chinese markets on the US stock markets as China opens up to investors globally. China's stock market since the last financial reform has become as educational about forthcoming corporate profits as in the US. Furthermore, although it is a closed market meaning not everyone can have the opportunity to invest in Chinese markets, Chinese

One of the newest stock exchanges is the NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations. It was the world’s first electronic stock when it was founded in 1971. Now it has trading, clearing, exchange technology, listing, information and public company services from six continents. The Nasdaq has over 3,600 listed companies, a value of approximately $9.6 Trillion and more than 10,000 corporate clients. The technology that is behind the NASDAQ is now used in over 50 countries. It is so widespread that one out of every ten transactions happens in NASDAQ’s security transaction program.

Thus, with the superior trading mechanism coupled with information transparency investors are gradually becoming aware of the manifold advantages of the OTCEI. National Stock Exchange (NSE) With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards.

Brokerage firms serve a demographic of speculators who exchange open stocks and different securities, through the firm's agent stockbrokers. A conventional, or "full service," brokerage firm generally attempts more than simply carrying out a stock or bond trade.The staff of this kind of brokerage firm is endowed with the obligation of examining the business sectors to give suitable proposals and in doing as such they coordinate the activities of pension fund managers and portfolio managers alike. These firms also offer margin credits for certain approved customers to buy investments on credit, subject to concurred terms and conditions. Conventional brokerage firms have also turn into a wellspring of up-to-date stock price and

Since the late 1980’s the United States has observed several housing market bubbles and subsequent collapses (Calabria 2011, p. 552). Also, the country has also observed a profound increase in the trading of technologies stock (Sabherwal, Sarkar, and Zhang, 2011, p. 1210). In addition, the development of day-trading has taken control of nearly half of the stock trading industry (Chou, Wang, and Wang, 2014, p. 403). As a result, the traditional methods of company-share value evaluation no longer provide an accurate estimate of company value (Rosenblatt and Gawronski, 2004, p. 118). The introduction of twenty-first century technologies and stock trading opportunities have created an increasingly volatile stock market due to the usage of the internet for day-trading.