Information on Stocks and the Stock Market
Does the stock market act as a predictor or a cause of economic growth? What do all those stock market numbers on the nightly news mean anyway? Here we've got the stock market information that you need.
Does Wired's Page Count Predict NASDAQ Movements?
A reader asks: "Why does a stock go down in price when there is a big sell off or any selling for that matter? Meaning doesn't there have to be a buyer when there are sellers? So if people are buying when others are selling shouldn't that equal it out and the stock price stay the same?"
Article answers the question: This has always baffled me: When stocks take a beating, where does the lost money go? Example: Say I bought shares of AOL at $80, but the shares are now worth $15. In who's pocket did my loss of the $65 go?
Even though there have been strong earnings reported this season the stock market has still been struggling this month (August 2004). Nasdaq and the S&P hit new lows for the year this week before rallying, and the Dow broke 10,000. Direction has moved from the cyclicals to the utilities and consumer staples stocks. Some technical analysts have declared the beginning of a new force.
Insider Trading: What did Martha Do? is a brief look at insider trading and why many forms of insider trading are illegal.
An explanation of what the price/earnings ratio is (the P/E ratio) and why it's important.
Article examines the link between stock market crashes and recessions to see if a bear market can cause the economy to go into recession.
In my article "How Markets Use Information To Set Prices" we saw how various markets, such as the stock market, use the collective information of investors to set prices. In "How Would the Market React to the Death or Capture of Saddam or Osama?", Mutual Funds guide Dustin Woodard wonders what would happen to the price of stocks if Saddam Hussein or Osama Bin Laden were captured by U.S. forces.
If you read the newspaper, listen to the radio, or watch the nightly news on television, you'll probably hear about what happened to "the market" today. It's all fine and good that the Dow Jones finished up 35 points to close at 8738, but what does that mean?
Article answers the following question: What is arbitrage? What markets do arbitrageurs usually trade on? The answers to your arbitrage questions right here.