Originally, poor economic data (the manufacturing PMI in January dropped to 49.8, while the United States was 53.9 in the same period), and the recent fall in the renminbi has already made the stock market crumbling.
Discusses why stock prices in the United States sometimes fall in response to good economic news. Effect of two countervailing forces, dividends and the market discount factor, on share prices; Differences between equities and bonds; Extend to which investors revise their dividend forecasts in ...
Stock prices are not always determined as a result of rational investor behavior. Stock prices also rise and fall in response to fear and greed, whether in response to overall market conditions or prevailing investor wisdom about a particular company and its stock. When stock prices are steadily ...
Prices for seasonal food products fall at demand peaks. Price declines are not driven by falling agricultural input prices; indeed, farm to retail margins narrow sharply. I use electronic scanner data from a sample of US supermarkets to show that seasonal price declines are closely linked to mark...
It is well documented that stock prices on ex-dividend days drop by less than the value of the dividend, on average. This has commonly been attributed to the effect of tax clienteles. We examine data from the Hong Kong stock market, where neither dividends nor capital gains are taxed. As...
If you've ever lost money on a stock, you've probably wondered if there's a way to make money when stocks fall. There is, and it's calledshort selling. Even though it seems to be the perfect strategy for capitalizing on declining stock prices, it comes with even more risk than buyin...
While not purely predictable, bond prices tend to be more predictable than stock prices because their moves are more calculable based on the change in interest rates. If interest rates rise or fall, investors can quickly figure the theoretical new price of a bond with a simple calculation. ...
prices start to fall. As people start to see prices going lower and lower, people become more fearful and sell more stock to cut their losses. So more sellers enter the market, pushing stock prices ever lower. The cycle carries on and pretty soon, we have what you call astock mark...
stock of gold, current prices make today's annual production of gold command about $160 billion. Buyers -- whether jewelry and industrial users, frightened individuals, or speculators -- must continually absorb this additional supply to merely maintain an equilibrium(平衡) at present prices. ...
How does a stock market decline affect the economy? Why a fall in present consumption is the opportunity cost to an economy of increasing capital investment? A) Why do people demand money? B) How is money demand related to interest rate?