Question

Why are stock markets the most watched and reported of the financial security markets? What are...

Why are stock markets the most watched and reported of the financial security markets?

What are the main features of stocks & stock markets that are different from other types

of financial securities or markets?

Homework Answers

Answer #1

Stock markets are most watched because

1) The breadth of their coverage

2) Their high market cap

3) The easy liquidity they provide

4) Gaining more popularity with investor education

The main features are that it is an aggregation of buyers and sellers which are very tightly regulated

There are other markets as well

Forex Market: The largest market in the world. The forex market facilitates the exchange of one currency for another currency. Currencies are always traded in pairs, with many potential combinations available, but only some of which are very liquid.

Commodities market - where a person can trade in commodities

But the main difference is that, those markets are very sophisticated with very limited coverage and hence is difficult for a common person to follow and trade

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A competent U.S. financial manager must understand the way U.S. stock markets are structured and operate....
A competent U.S. financial manager must understand the way U.S. stock markets are structured and operate. In the United States, the stock markets consist of primary markets, secondary markets, listed security exchanges, over-the-counter markets, as well as the regulations that monitor these markets. In what market do most U.S. stock market transactions occur? ...The secondary market ...The primary market _____________ act as agents for investors who want to buy or sell stocks. True or False: One of the major differences...
Given the current economic environment and s impact on the capital markets which security do you...
Given the current economic environment and s impact on the capital markets which security do you think has the lowest risk common stocks prefermed stocks pr bonds? why? explain your answer based on the difference between theses securities
On February 24, 2020, you tuned into CNBC financial TV channel and watched different financial analysts...
On February 24, 2020, you tuned into CNBC financial TV channel and watched different financial analysts discussing the current valuations of Amazon, Apple, Google, Goldman Sachs, and the overall U.S. and European stock markets. However, you are puzzled because these analysts could not agree on the current valuations and end-of-year price targets for the four companies and overall stock market. For example, two analysts argued that Amazon and Goldman Sachs (an investment bank) are currently overvalued, while others reached the...
Q4: Why are financial markets important to the health of the economy? Q5: When the American...
Q4: Why are financial markets important to the health of the economy? Q5: When the American dollar worth more in relation to currencies of other countries, would an American be more likely to buy American-made or foreign-made jeans? Q6. Why do Government Treasury bills have lower interest rate than large-denomination negotiable bank CDs? Q7. Interest rates are among the most important monetary variable watched in the economy. Briefly explain why interest rate is important for the economy.
What are the main differences between the bond markets and stock markets?
What are the main differences between the bond markets and stock markets?
Analyse the Case The stock market refers to markets that exist for issuing, buying, and selling...
Analyse the Case The stock market refers to markets that exist for issuing, buying, and selling stocks (equity shares) that trade on a stock exchange. An efficiently functioning stock market is considered critical to economic development, as it gives companies the ability to quickly access capital from the public. The stock market serves two very important purposes. The first is to provide capital to companies that they can use to fund and expand their businesses. The second purpose the stock...
Contrast the different types of financial markets and brokers used in investing. Be sure to address...
Contrast the different types of financial markets and brokers used in investing. Be sure to address primary vs. secondary, broker-dealer markets, and types of brokersAssume you purchased a stock for $40.00 last year. Over the year, its price increased to $42.00 and it paid a dividend of $1.50. What is the total return? Capital gain return and income return?
The bond market and stock market are two important types of financial markets. Which market would...
The bond market and stock market are two important types of financial markets. Which market would you prefer to use for your investments and why? In your answer, highlight at least three advantages and three disadvantages for your choice.
Project Financial Management Saudi and American Stock Market Crashes U.S. stocks careened lower Monday 9th of...
Project Financial Management Saudi and American Stock Market Crashes U.S. stocks careened lower Monday 9th of March 2020, with major indexes swinging perilously close to the first bear market in more than a decade as a price war for oil and fallout from the coronavirus frightened investors. With different fears, the Saudi stock market might be seen differently from most other markets in the world during and after the 2006 crash. What happened in two crashes, reasons and lessoned learned?...
1. What professions are associated with financial markets? · A. Stock broker · · B. All...
1. What professions are associated with financial markets? · A. Stock broker · · B. All of the options listed · · C. Investment banker · · D. Commodities broker · · E. Bond dealer · 2. What is the ticker symbol of Apple? 3.. What company does Warren Buffett own? 4. True or False, 75% of stocks follow the overall market trend. 5. What is the name of the current Federal Reserve Chairman? 6. If each share is $100,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT