question1: Why are prices listed in fractions &/or decimals
question2: Why are prices always changing so fast?
question3: Is there a good free website that can explain the above basics and much more?
Please feel free to answer any of the 3 questions that you can please.
Thank you
2006-10-12 09:33:20 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
the ticker tape is explained here
http://www.investopedia.com/articles/01/070401.asp
2006-10-12 09:49:04 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
1) tradition - the original stock market was under a tree on Wall Street in NYC, and the common currency was spanish doubloons, which were often cut into 8 pieces - hence the saying, "Pieces of eight". Sometime about the 1980's the stock market finally converted to a decimal system.
2) Prices change so fast because they reflect the latest price that someone paid for that stock. If there are a gazillion shares of stock outstanding for United Widgets Amalgamated, there's usually a lot of those shares being bought and sold throughout the day. The price can be affected by anything that a buyer or seller thinks is important to the stock.
3) Try below for a starter. I can't guarantee any of them will make you any richer, but some knowledge is always a good thing.
2006-10-12 09:39:54 · answer #2 · answered by Ralfcoder 7 · 2⤊ 0⤋
Answering in reverse order:
Yahoo Finance, Fidelity, Vector Vest, Morning Star all have fine teaching & research available for free. I enjoy the fun at Motley Fool the most.
Prices are changing so fast because supply and demand rises and falls. In addition to the stocks, there is a much, much larger pool of mutual funds owning the stocks. The mutual fund managers listen / read for anything which will give them an edge in making money for their clients. One fund thinks it should sell 10k stock of Yahoo Answers - another fund is willing to buy 3k, no one else is interested. So fund one drops the price it is willing to sell for - w/in the same 30 seconds, now 8 people want to buy so a different fund decides to sell 20k. And so it goes.
Trading is done in US dollars USD w/ 100 cents which makes it easy to report as decimal or fraction. Takes less space in the paper. Most 'net reports are $ and cents.
2006-10-12 10:18:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
1. dunno - tradition I guess
2. I think the prices reflect the most recent trade in that stock. If a lot of trades are going on in one stock (say some news is just out) then that stock will pop up a lot in the ticker.
3. i would like to know that. But beware: the business is owned by the insiders, whatever the law may say. The experts know what it says in the beginners' guide; that tells them exactly what to do to get the beginners' money off them.
2006-10-12 09:41:10 · answer #4 · answered by wild_eep 6 · 0⤊ 0⤋
1. Fractions aren't really used for stocks anymore--tenth of a cent easier.
2. Supply and demand...news, financial reports, natural disasters all kinds of things can set it off and cause rapid change. It depends on the type of stock if it is volitile, speculative or not.
Good read: How to Make Money in Stocks by William J. O'Neil
Your welcome.
2006-10-19 13:07:24 · answer #5 · answered by Sugar 2 · 0⤊ 0⤋
Question 3 is dead as do not need to understand the 2 above to invest. Markets move based on information flow & that gets more & more rapid. Don't focus on meaningless trivia. Start investing now.
2006-10-12 11:56:23 · answer #6 · answered by vegas_iwish 5 · 0⤊ 0⤋
Hi, i suggest a great site with plenty of Issues related to your investing and everything around it. it also provide clear and accurate answer to many common questions.
I am sure that you can get your answers in this website.
http://investing.sitesled.com/
Good Luck and Best Wishes!
2006-10-12 14:58:23 · answer #7 · answered by stock.geek 2 · 0⤊ 0⤋