The Stock Market: Explained! by 1950s educational videos

Two gems I found on DVD. Sadly, since I don’t own the copyright, and don’t feel like getting into a kerfuffle with anyone, for now I’m just going to put them behind a password on Vimeo for our own internal use. So, Team TRADE PRACTICES, you know what to do. If anyone else is reading … Continue reading

Option

In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option derives from … Continue reading

Futures market

[From Wikipedia] A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives. Such instruments are priced according to the movement of … Continue reading

Black-Scholes

[from Wikipedia] The Black–Scholes model (pronounced /ˌblæk ˈʃoʊlz/) or Black–Scholes-Merton is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European-style options. The formula led to a boom in options trading and the creation of theChicago Board Options Exchange. lt is widely used by options market participants. Many … Continue reading

Thoughts on markets, overall structure of narrative

Distinction being made in The Worldly Philosophers between markets and market systems Market systems = a way of maintaining balance (development beyond tradition or force as a way of maintaining order and everyone doing their job) Market systems run society

Markets vs. market systems

  from The Worldly Philosophers

Market chaologists…

[from http://www.amazon.com/Fractal-Market-Analysis-Investment-Economics/dp/0471585246] Chaos theory is a branch of mathematics that, despite its name, attempts to make order out of seemingly random events and that has found application in the natural sciences. Market chaologists, as they have come to be known, have marshaled an array of formulas and computer models but have been criticized for not being … Continue reading

Brainstorm: relationship analogies to market manuevers

Would the relationship equivalent of shorting a stock be a younger woman marrying an older man for money in the hopes of then getting some of that money for herself out of the divorce settlement? If “shorting a stock” is a younger women marrying an older man for his money in the divorce settlement would … Continue reading

They Tried to Outsmart Wall Street (NY Times)

[from The New York Times] Emanuel Derman expected to feel a letdown when he left particle physics for a job on Wall Street in 1985. After all, for almost 20 years, as a graduate student at Columbia and a postdoctoral fellow at institutions like Oxford and the University of Colorado, he had been a spear carrier … Continue reading

Mark-to-market accounting

[from Wikipedia] Mark-to-market or fair value accounting refers to accounting for the fair value of an asset or liability based on the current market priceof the asset or liability, or for similar assets and liabilities, or based on another objectively assessed “fair” value. Fair value accounting has been a part of Generally Accepted Accounting Principles (GAAP) in the United States since the early … Continue reading

buy sell greed fear

Open outcry

[From Wikipedia] Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. The part of the trading floor where this takes place is called a pit. Examples of markets which use this system in the United … Continue reading

Cornering the market

[from Wikipedia] In finance, to corner the market is to get sufficient control of a particular stock, commodity, or other asset to allow the price to be manipulated. Another definition: “To have the greatest market share in a particular industry without having a monopoly. Companies that have cornered their markets usually have greater leeway in their decisions; for example, they may charge higher prices for their … Continue reading

Naked short selling

[From Wikipedia] Naked short selling, or naked shorting, is the practice of short-selling a financial instrument without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a “fail to deliver”. The transaction generally … Continue reading

Short selling

In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to that third party. The short seller hopes to profit from a decline in the price of the … Continue reading