Read complete books and articles on: Stock Market

Stock Exchange - organized market for the trading of stocks and bonds (see bond; stock). Such markets were originally open to all, but at present only members of the owning association may buy and sell directly. Members, or stock brokers, buy and sell for themselves or for others, charging commissions for their services. A stock may be bought or sold only if it is listed on an exchange, and it may not be listed unless it meets certain requirements set by the exchange's board of governors. There are stock exchanges in all important financial centers of the world; the New York Stock Exchange (NYSE, in nearly continuous operation since 1792), which had a trading volume of $7.3 trillion in 1998, is the largest in the world. Tokyo, London, and Frankfurt also have major facilities.

By providing a centralized, ready market for the exchange of securities, stock exchanges greatly facilitate the financing of business through flotation of stocks and bonds. However, speculation in stocks can sometimes accentuate the instability of an economy. The reality of the Great Depression was emphasized by the stock market crash in 1929. The interstate sale of securities and certain stock exchange practices in the United States are regulated by federal laws administered by the Securities and Exchange Commission. Today, a large percentage of stocks are traded through such over-the-counter organizations as Nasdaq (National Association of Securities Dealers Automatic Quotations) and its European equivalent, Nasdaq Europe (formerly Easdaq). Through these organizations, many securities not listed on a major stock exchange may be traded by dealers using computer and telecommunications technology; in 1994, Nasdaq, on which many computer and other high-technology stocks are traded, surpassed the NYSE in annual share volume. After the deregulation of the British securities market in 1986, the London Stock Exchange saw a decline in business due to a new computerized market similar to Nasdaq.

Computer-driven trade has significantly affected the stock exchange. Computer and telecommunications technology, besides opening a wide market in over the counter dealings, has also given rise to trading on an international level. Personal computers and modems allow trading to occur around the clock (after-hours NYSE and Nasdaq trading began in 1999), and the securities trading on one major stock exchange can now significantly affect the trading on others. Many contend that the traditional manner of trading will eventually become obsolete. Technology also now allows for "day trading," a high-risk business in which numerous computerized trades are made during a single day, with large gains (and large losses) possible. See also margin requirement.

See A. Crump, The Theory of Stock Speculation (1983); D. L. Thomas, The Plungers and the Peacocks: An Update of the Classic History of the Stock Market (1989); E. S. Bradley and R. J. Teweles, The Stock Market (7th ed. 1998).

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14 of the Best Books and Articles on: Stock Market

as selected by Questia librarians

1.

Irrational Exuberance » Read Now
by Robert J. Shiller. 296 pgs.

Collections: Entire Library

In this bold and potentially urgent volume, Robert J. Shiller, a respected expert on market volatility, offers an unconventional interpretation of recent U.S. stock market highs and shows that Alan Greenspan's term "irrational exuberance" is a good description of the mood behind the market. He warns...
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In this bold and potentially urgent volume, Robert J. Shiller, a respected expert on market volatility, offers an unconventional interpretation of recent U.S. stock market highs and shows that Alan Greenspan's term "irrational exuberance" is a good description of the mood behind the market. He warns that poorer performance may be in the offing and tells us how we--as a country and individually--can respond. Shiller credits an unprecedented confluence of events with driving stocks to uncharted heights. He analyzes the structural and psychological factors that explain why the Dow Jones Industrial Average tripled between 1994 and 1999, a level of growth not reflected in any other sector of the economy. In contrast to many analysts, Shiller stresses circumstances that alter investors' perceptions of the market. These include the entry of the Internet into American homes, the misimpression that the aging of the baby-boom generation builds long-term protection into the market, and herd behavior, such as day-trading. He also examines cultural factors, including sports-style media coverage of the Dow's ups and downs and "new era" thinking about the economy. He considers--and challenges--efforts to rationalize exuberance that are based on either efficient-markets theory, narrowly construed, or the claim that investors have only recently learned the true value of the market. In the most controversial portion of the book, Shiller cautions that a market that is overvalued by historical standards is inherently precarious. Among his prescriptions is an urgent plea to immediately end what he argues are perilous schemes to privatize social security in favor of plans to reform it. He also argues that private pension plans that encourage many people to put their entire retirement funds in the stock market should be modified. And he calls on our savings and investment institutions to take more sensible account of emerging risk-management principles. Shiller's analysis is convincingly documented, and--regardless of the market's future behavior--his book will stand as an important elaboration of why stocks soared and what our investment alternatives are. Irrational Exuberance is a must-read for pension-plan sponsors and endowment managers in the United States and abroad. It will also be studied by investment advisers, policy makers, and anyone from Wall Street to Main Street who doesn't want to be caught sitting on the speculative bubble if (or when) it bursts.
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2.

Stock Market Cycles: A Practical Explanation » Read Now
by Steven E. Bolten. 178 pgs.

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Anyone who wants to understand stock market cycles and develop a focused, thoughtful, and solidly grounded valuation approach to the stock market must read this book. Bolten explains the causes and patterns of the cycles and identifies the causes of stock price changes. He identifies the sources of...
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Anyone who wants to understand stock market cycles and develop a focused, thoughtful, and solidly grounded valuation approach to the stock market must read this book. Bolten explains the causes and patterns of the cycles and identifies the causes of stock price changes. He identifies the sources of risks in the stock market and in individual stocks. Also covered is how the interaction of expected return and risk creates stock market cycles. Bolten talks about the industry sectors most likely to be profitable investments in each stage of the stock market cycles, while identifying the stock market bubble and sinkhole warning signs. The role of the Federal Reserve in each stage of the stock market cycle is also discussed.
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3.

E-Capital: The Link between the Stock Market and the Labor Market in the 1990s, in Brookings Papers on Economic Activity » Read Now
by Robert E. Hall. 35 pgs.

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...E-Capital: The Link between the Stock Market and the Labor Market in the 1990s...U.S. economy. The value of the stock market rose tremendously, with many of...Despite the...
4.

The Supply-Side Effect of a Stock Market Crash, in Challenge » Read Now
by Dean Baker. 11 pgs.

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...The Supply-Side Effect of a Stock Market Crash. by Dean Baker...accepted among economists that the stock market is significantly overvalued. At...forward to a major plunge...
5.

Did Pension Plan Accounting Contribute to a Stock Market Bubble?, in Brookings Papers on Economic Activity » Read Now
by Julia Lynn Coronado, Steven A. Sharpe. 49 pgs.

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...plan accounting contribute to a stock market bubble? by Julia Lynn Coronado...ballooned as a result of the booming stock market. Because of accounting rules for...sheet has...
6.

Rational Bubbles in the Stock Market: Accounting for the U.S. Stock-Price Volatility, in Economic Inquiry » Read Now
by Yangru Wu. 11 pgs.

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...RATIONAL BUBBLES IN THE STOCK MARKET: ACCOUNTING FOR THE U.S. STOCK...general specification tests for stock market bubbles yield mixed results. For...credible job in...
7.

Does Financial Market Development Stimulate Savings? Evidence from Emerging Stock Markets, in Contemporary Economic Policy » Read Now
by Catherine Bonser-Neal, Kathryn L Dewenter. 11 pgs.

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...SAVINGS? EVIDENCE FROM EMERGING STOCK MARKETS CATHERINE BONSER-NEAL and...development, as measured by the stock market, and gross private savings rates...positive relation...
8.

Stock Price Manipulation Through Takeover Bids, in Rand Journal of Economics » Read Now
by Mark Bagnoli, Barton L. Lipman. 24 pgs.

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...intends to manipulate the stock price. Hence the market maker increases his sales...After the bid is made, the market for the targets stock reopens. 8 When the market...
9.

The US Stock Market and the Global Economic Crisis, in National Institute Economic Review » Read Now
by Sushil B. Wadhani. 2 pgs.

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...The US stock market and the global economic crisis...discusses the potential role of the US stock market in exacerbating a hard landing, while...the other hand, several...
10.

Wall Street: A History » Read Now
by Charles R. Geisst. 404 pgs.

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How did a small, concentrated pocket of lower Manhattan come to have such enormous influence in national and world affairs? In this wide-ranging volume, economic historian Charles Geisst answers this question as he provides the first history of Wall Street, ranging from the loose association of...
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How did a small, concentrated pocket of lower Manhattan come to have such enormous influence in national and world affairs? In this wide-ranging volume, economic historian Charles Geisst answers this question as he provides the first history of Wall Street, ranging from the loose association of traders meeting on New York sidewalks and coffee houses in the late 18th century, to the modern billion-dollar computer-driven colossus of today. Geisst's narrative traces several themes--the move of industry and business westward in the early 19th century, the rise of the great Robber Barons, the influence of the securities market on incredible growth of industry, and the gradual increase in government involvement in Wall Street--and also features a look at the some of Wall Street's most colorful and ruthless wheeler dealers. Wall Street is at once a chronicle of the street itself, from the days when the wall was merely a defensive barricade built by Peter Stuyvesant, and in a broader sense it is an engaging economic history of the United States, a tale of profits and losses, endlessly enterprising spirits, and the role Wall Street played in helping America become the most powerful economy in the world.
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11.

The London Stock Exchange: A History » Read Now
by Ranald C. Michie. 674 pgs.

Collections: Education, Entire Library

...Risk-Adjusted Returns and Stock Market Games Gary Kagan, Herbert Mayo, and Robert Stout Stock market games (SMG) are designed to give...participants in the New Jersey...
12.

Looking Forward to the Stock Market, in Social Studies » Read Now
by William Dickneider. 5 pgs.

Collections: Education, Entire Library

...Looking Forward to the Stock Market WILLIAM DICKNEIDER Can the stock market have a place in social studies? You bet it can. Indeed, the stock market can offer many...
13.

The Psychology of the Stock Market: An Undergraduate Course, in Teaching of Psychology » Read Now
by Edward Lovinger. 3 pgs.

Collections: Education, Psychology, Entire Library

...The Psychology of the Stock Market: An Undergraduate Course Edward...concerning the psychology of the stock market. The course presents an overview...psychological factors...
14.

Risk-Adjusted Returns and Stock Market Games, in Journal of Economic Education » Read Now
by Gary Kagan, Herbert Mayo, Robert Stout. 12 pgs.

Collections: Education, Entire Library

...Risk-Adjusted Returns and Stock Market Games Gary Kagan, Herbert Mayo, and Robert Stout Stock market games (SMG) are designed to give...participants in the New Jersey...