PPT-The Stock Market: Its Function, Performance,

and Potential as an Investment Opportunity The Economic Functions of the Stock Market Stocks and Bonds Stock Stocks represent ownership of corporate businesses Stock owners are entitled to the . Stock Compass is the web's best stock market charts, expert opinions, and supports you to make more money in the Stock Market. Stock Compass is the web's best stock market and futures picks, analysis and tools. Support to make you a better trader and investor. Nonstandard beliefs. Standard model: in average, we are correct about distribution of the states. In other words, we are able to understand reality as it is by correctly estimating possible outcomes. 3/25. What are all the ways that a person could save money? What effects do you think people saving money have on the economy as a whole . Saving and Investing. Chapter 12. I. Saving and Capital Formation. Stocks and Efficient Markets. Equities, or shares of common stock, represent ownership of corporations. People can purchase stock through a stockbroker, brokerage firm, or indirectly through mutual funds and 401k plans. The Efficient Market Hypothesis . The efficient market hypothesis . Event studies . Are markets efficient? . . Weak-form t. ests: Predictability in stock . market returns. . . WHAT IS SHARE MARKET. A share market is the place shares are either issued or exchanged. . A securities exchange is like a share showcase. The key contrast is that a securities exchange helps you exchange budgetary instruments like securities, common assets, subordinates and in addition shares of organizations. A share advertise just permits exchanging of shares. . Global Financial Management. Campbell R. Harvey. Fuqua School of Business. Duke University. charvey@mail.duke.edu. http://www.duke.edu/~charvey. Overview. Market Efficiency. Theory of efficient markets. Chapter 11 . Why would you want to . invest in the stock market? . . What is a Stock? . A share of stock represents partial ownership in a corporation-like Apple, Coca Cola, or Google . A share of a corporation can be held by an individual, group, or another company . How are stocks traded?. How is stock performance measured?. What were the causes and effects of the Great Crash of 1929?. Buying Stock 11.3. Corporations can raise money by issuing stock, which . represents ownership in the corporation. A portion of stock is called a share. . Stock Market. Stock Market . – a place where people can buy, sell, or trade stocks. Stock. – Certificate of ownership in a corporation, or business. Stockbroker. – person who buys or sells stocks for investors. Mr. Henry. AP Economics. Part I: Quiz. # your whiteboard . #. 1-14. Write down the correct letter to each Q. #1. Where's the oldest stock exchange in the world?. A Lyon, France . B Barcelona, Spain . Bodie, Kane and Marcus. Essentials of Investments . 9. th. Global Edition. . 8. 8.1 Random Walks and Efficient Market Hypothesis. Random Walk. Notion that stock price changes are random. Efficient Market Hypothesis (EMH). What are stocks?. Shares are also known as securities because they secure cash value for ease of investment.. The most valuable and stable stocks are called “blue chips”. . (30 Dow Jones Components).