Speculative trading and stock prices

evidence from Chinese A-B share premia
  • 39 Pages
  • 4.23 MB
  • English
National Bureau of Economic Research , Cambridge, Mass
Stocks -- Prices -- Econometric models, Stocks --
StatementJianping Mei, Jose Scheinkman, Wei Xiong.
SeriesNBER working paper series -- no. 11362., Working paper series (National Bureau of Economic Research) -- working paper no. 11362.
ContributionsScheinkman, José Alexandre., Xiong, Wei, 1975-, National Bureau of Economic Research.
The Physical Object
Pagination39 p. :
ID Numbers
Open LibraryOL17626631M

SPECULATIVE TRADING AND STOCK PRICES fundamental components. The relatively simple environment in China’s stock markets (strictly enforced restrictions on short-sales, segmentation of A and B shares, and lack of derivatives markets) and the relatively large sample of A-B pairs allow us to identify speculative trading by investors as.

Speculative Trading and Stock Prices: An Analysis of Chinese A-B Share Premia* Jianping Mei, José A. Scheinkman and Wei Xiong This version: June Abstract In this paper we use data from China’s stock markets to analyze non-fundamental components in stock prices.

During the periodseveral dozen Chinese firmsCited by: Get this from a library. Speculative trading and stock prices: evidence from Chinese A-B share premia.

[Jianping Mei; José Alexandre Scheinkman; Wei Xiong; National Bureau of Economic Research.]. split-adjusted stock returns, stock prices, and shares outstanding for all traded firms are from the Center for Research on Security Prices (CRSP).

Description Speculative trading and stock prices PDF

Following a common practice, we restrict the sample to firms with CRSP share codes 10 and Firms’ book value of equity and book value of debt are obtained from Compustat. Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premia * Jianping Mei Cheung Kong Graduate School of Business Oriental Plaza E3, 3FL, 1 East ChangAn Av., BeijingChina Jos´e A.

Scheinkman Department of Economics. Investment professionals might be intrigued by, if not convinced of, the regular pattern of [speculative trading] bubbles as presented in this short volume [these] discussions – involving Scheinkman and the eminent academics Kenneth Arrow, Patrick Bolton, Sanford Grossman, and Joseph Stiglitz – are worth the price of the book., Financial Reviews: 3.

At least two reasons help explain the lack of direct empirical tests on the pricing implication of speculative trading. First, speculation may not generate systematically identifiable components in stock prices in reasonably efficient markets, that is, markets dominated by institutional investors, with a mature short-selling mechanism, independent and fair media, and sophisticated regulations.

Luckin Stock Really Is Just a Speculative Bet at Best Luckin used to be a high-flyer stock. Trading under the ticker LK on the Nasdaq composite, the price of Luckin stock plummeted. A stock board inside the Shenzhen Stock Exchange displays prices.

Photo: Reuters The frenzied trading on Shenzhen's ChiNext technology board that propelled a debutant stock by nearly 3, per. Speculation is the act of trading in an asset or conducting a financial transaction that has a significant risk of losing most or all of the initial outlay with the expectation of a substantial gain.

With speculation, the risk of loss is more than. The speculative value is calculated by starting with the stock price and subtracting the book value and the value of predictable earnings. The. Traders cite the book, "How to Make Money in Stocks" by William O'Neil, as a valuable reference for learning the art of speculation.

This book, and many others, provides the aspiring trader. A stock is either moving or it isn’t. In fact, methods which largely rely on price action (technical analysis), have long-been streamlined to the point where computers can do it better and faster than humans.

Thus, automated trading now accounts for the lion’s share of daily stock market activity. We would like to show you a description here but the site won’t allow more. If you want to learn either how to speculate or to be a better investor, I highly recommend the following books: – Reminiscences of a Stock Operator: Reminiscences is a novel about Jesse Livermore and his experience as a trader.

The book was published inbut it still offers a lot of insights into the art of trading and speculation. The speculative value is calculated by starting with the stock price and subtracting the book value and the value of predictable earnings.

The speculative value incorporates all the growth in earnings that the market expects beyond the first two years. Free trading fuels rampant speculation in stocks like Tesla and Virgin Galactic Published Fri, Feb 21 PM EST Updated Sat, Feb 22 PM EST Kate Rooney @Kr00ney.

Understanding a Speculative Stock. Speculative stocks appeal to short-term traders due to their low share price and greater volatility compared to traditional blue-chip stocks. The greater. History. With the appearance of the stock ticker machine inwhich removed the need for traders to be physically present on the floor of a stock exchange, stock speculation underwent a dramatic expansion through the end of the s.

The number of shareholders increased, perhaps, from million in to 26 million in Speculation and investment. The Nasdaq Stock Market, or simply Nasdaq, is the second-largest stock exchange in the world for investors looking to buy and sell shares of stock. Nasdaq was initially an acronym, NASDAQ, which.

The stock blew past $ a share in early trading and then $, $ and finally topped out just shy of $ a share. "I just can't believe this freaking stock. Speculators try to profit from news-based stock price movements and short-term price signals based on the technical indicators.

Investors, however, are generally long-term players who buy stocks based on companies’ fundamentals and hold them for longer periods. The speculator will drive prices to extremes, while the investor evens out the market (generally selling when the speculator buys and buying when the speculator sells)—over the long run, stock prices end up reflecting the underlying value of the companies.

Many investors would look at the ticker price of this stock and run away, however, this is one of the best performing "senior" stocks and has an incredible balance sheet, management and speculative future. A very speculative trade with a great risk/reward ratio. However, a trade to approach carefully, despite the attractive potential rewards.

- Strong Uptrend - RSI above / STOCH below 50 - MACD below Signal Suggested Entry $ Suggested Stop Loss $ Target price $ Note that I tend to. It was one of the first books that developed a methodology for trading stocks and interpreting predictable behavior of the stock market and its human participants, focusing on price.

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trading pdf, stock market, forex course, video courses, astrology, swing trading ebooks, audiobook, download, bitcoin, forex courses, technical analysis A Detailed Presentation Of W.

Gann’s Technical Trading Principles 6 - The Keys To Successful Speculation. Email me, ask Price. Astro Trading (47) More.

Forex Trading. According to the Historical Low Price-Book Screener, four stocks trading near historical low price-book ratios are J2 Global Inc. (NASDAQ Shares in Accor and IHG rise on merger speculation.

stock indexes, prediction marketsandeventfutures.

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Additionally, the industry introduced trading in options on futures con-tractsin Just as the types of instru-ments traded on futures exchangeshaveevolved,sohas the method of trading those instruments.

Until the s, futures trading was conducted primarily on the floor of the exchanges. The strategy is a success thanks to its easy utilization, and its simplicity 💰 Fundamental stock trading analysis - Fundamental stock analysis – assumes that stock prices can be wrong, and the true value of a stock can be revealed by understanding the company’s activity.

The stock will get to the “correct” price eventually. Historically, early stock market bubbles and crashes have their roots in financial activities of the 17th-century Dutch Republic, the birthplace of the first formal (official) stock exchange and market in history.

The Dutch tulip mania, of the s, is generally considered the world's first recorded speculative bubble (or economic bubble). Examples. Two famous early stock market bubbles were.The book is a careful study, drawing widely from the research and historical evidence to come to the conclusion that the enormous stock market boom that started around and picked up incredible speed after was a speculative bubble, not grounded in sensible economic fundamentals.Trading: 6 Beginner's Guide in 1: Learn the Bases with Proven Strategies: Options, Day, Swing, Forex, Stock, and Trading Psychology to Start Investing in the Market for a Living and Get Quickly Wealth Henry Hill.

out of 5 stars The Little Black Book of Stock Market Secrets Matthew R. Kratter. out of 5 stars Kindle Edition.