The term "stock-for-stock" is popularly used in two different contexts, and it regularly makes business and news headlines.. "Stock-for-stock" most commonly appears in headlines in reference to the stock-for-stock merger. In this type of merger, the acquiring company trades shareholders of the target company a predetermined number of shares of its own stock for each share of … [Read more...]
What causes a significant move in the stock market?
There are unlimited number of factors that can cause the stock market to move significantly in one direction or another. This can include things like economic data, geopolitical events and market sentiment, among a myriad of other factors. There is a constant in each of these situations, however. In any stock market move, whether up or down, there is a significant difference … [Read more...]
Elliott Wave Theory – the concept
Elliott Wave Theory was developed by Ralph Nelson Elliott by discovering that stock markets, thought to behave in a somewhat chaotic manner, in fact traded in repetitive cycles. Elliott discovered that these market cycles resulted from investors' reactions to outside influences, or predominant psychology of the masses at the time. He found that the upward and downward … [Read more...]
Financial instruments for Forex
Spot A spot transaction is a two-day delivery transaction , as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot … [Read more...]
Market psychology Of Foreign exchange trading
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways: Flights to quality Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven." There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The Swiss franc … [Read more...]