DOCSLIB.ORG

Capital Market 17

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Capital Market 17 ECONOMIC REPORT AND BALANCE SHEET 1388 CHAPTER CAPITAL MARKET 17 he Tehran Stock Exchange indices Rules on the purchasing of state-owned witnessed profound improvements shares floated in the capital market; as of the beginning of 1388 till the month of Mehr of the same year. Regulations regarding Over-the-Counter TThis trend, however, reversed in the months (OTC) Market; of Aban and Azar, and again increased as of Guidelines on the setting of the minimum Dey 1388. These developments largely re- and the maximum amount of fees charged sulted from improvement in international by the Securities and Exchange Organization financial markets, rise in the price of raw for the supervision of trading by Iran's OTC materials, supply of public enterprises' shares Company. under Article 44 of the Constitution, prevailing recession in other domestic markets, and di- versification of financing instruments. Share Trading In the review year, the High Council of During 1388, a number of 85,625.1 million Securities and Exchange formulated and shares and rights worth Rls. 184,166.2 bil- approved a set of rules and guidelines lion were traded on the TSE, indicating including: respectively 78.5 and 34.1 percent growth, in terms of volume and value, compared Regulations regarding futures market with previous year. trading in line with Paragraph 4, Article 4 of the Law Governing the Securities Market; Of total number of shares and rights traded in 1388, 89.9 percent were traded in Executive regulations relating to "op- the primary market and 10.1 percent in the tion", "Istisna", and "mortgage bonds"; secondary market. Moreover, in terms of value of trading, 88.9 percent were traded in Rules on the trading of housing mort- the primary market and 11.1 percent in the gage loan papers; secondary market. 1 TSE Share Trading Number Average Average Volume of trading Value of trading of trading volume of value of day (million shares) (billion rials) days of day trading trading Shares Rights Total Shares Rights Total TSE (million shares) (billion rials) 1387 47,254.9 720.5 47,975.4 136,853.2 532.2 137,385.4 238 201.6 577.2 1388 84,769.5 855.6 85,625.1 183,253.7 912.5 184,166.2 244 350.9 754.8 1 Source: Tehran Stock Exchange (TSE) Including companies listed on the unofficial board 151 Chapter 17 CAPITAL MARKET In the review year, the TSE was active of shares and rights traded on the TSE. In for 244 days. The average volume and value 1388, "banks, credit institutions, and other of day trading were 350.9 million shares and monetary foundations" and "telecommuni- Rls. 754.8 billion, representing respectively cation", holding 69.4 percent of total volume 74.1 and 30.8 percent rise, compared with and 63.9 percent of total value had the 1387. highest impact on TSE trading. A comparison of trading in the first half Figure 17.2. Comparison of price and dividend of 1388 with the second half reveals that out index growth with inflation of total trading, 49.6 percent, in terms of (percent) volume, and 30.2 percent, in terms of value, price and dividend index growth were traded in the first half, and 50.4 and inflation rate (1383=100) 60 69.8 percent, in terms of volume and value, respectively, in the second half of 1388. 40 Shares and Rights Trading on the TSE 20 (share/percent) Volume Value 0 st nd st nd 1 half 2 half 1 half 2 half 1387 53.9 46.1 74.3 25.7 -20 1388 49.6 50.4 30.2 69.8 1384 1385 1386 1387 1388 Source: TSE In 1388, share trading of almost half Figure 17.1. TSE share trading of industries increased as compared with preceding year. The volume and value of shares of 21 industries grew in 1388. volume of trading (billion shares) value of trading (trillion rials) In the review year, "banks, credit institu- 200 tions and other monetary foundations", "tele- communication", and "exploitation of gas oil 150 and other activities, excluding exploration" had the highest impact on the volume of 100 shares and rights traded by respectively 66.3, 19.1 and 4.3 percentage points, compared 50 with previous year, accounting for 89.7 percentage points of total growth. Moreover, 0 1384 1385 1386 1387 1388 "telecommunication", "banks, credit institu- tions and other monetary foundations", and "technical and engineering services" had the Data on shares and rights traded on the highest share in raising the value of shares TSE, by industries, indicate that "banks, credit and rights traded by 46.5, 22.7, and 3.7 institutions, and other monetary foundations", percentage points, respectively, compared with 40.1 percent of total volume of traded with the year before. Securities were traded shares and "telecommunication", with 44.5 for 3.0 million times, indicating 61.6 percent percent of total value of traded shares, had growth compared with the 11.2 percent fall the highest shares in total volume and value in the preceding year. 152 ECONOMIC REPORT AND BALANCE SHEET 1388 Volume of Trading and Number of Buyers Percentage change 1 2 1386 1387 1388 1387 1388 Volume of trading (times) 2,112,065 1,875,372 3,030,379 -11.2 61.6 Number of buyers 1,095,359 540,398 859,584 -50.7 59.1 Average volume of buying per person (shares) 21,363.7 88,778 99,612.2 315.6 12.2 Average value of buying per person (million rials) 66.7 254.2 214.3 281.1 -15.7 1 2 Source: TSE Based on total trading of shares and participation papers Due to the implementation of the new trading system of Stock Exchange as of Azar 16, 1387, calculation assumptions on the number of buyers have changed, leading to a different statistical trend of the mentioned variable. Market capitalization rose by 45.1 percent percent to 51,006.0, compared with 1387. to Rls. 651,428.3 billion at end-1388, compared Tehran Stock Exchange Price Index (TEPIX) with the respective figure of 1387. Furthermore, increased by 57.4 percent to 12,536.7 points based on interbank exchange rate1, market at end-1388, compared with preceding year. capitalization went up by 43.4 percent to TEPIX experienced a continued rising trend $66.2 billion. during the review year, except for the months of Aban and Azar. In the review year, "basic metals", "banks, credit institutions, and other monetary foun- The P/E ratio reached 5.8, indicating 51.3 dations" and "telecommunication" had the percent growth as compared with preceding highest contribution to market capitalization year. by 16.2, 14.2, and 13.1 percent, respectively, Among the components of TEPIX, "finan- (a total of 43.5 percent). Turnover ratio rose cial index" surged by 63.7 percent to 33,641.6 by 3.4 percentage points to 33.5 percent in points compared with the year before. Mean- 1388, compared with the year before. Ratio while, "industrial index" increased by 56.0 of shares traded to shares issued rose by 6.4 percent from 6,172.6 points at end-1387 to percentage points to 29.8 percent, compared 9,629.5 points at end-1388. with preceding year. In 1388, the primary market index went Tehran Stock Exchange Dividend and up by 61.9 percent to 10,336.5 points Price Index (TEDPIX) compared with the respective figure of last year. The secondary market index rose by Tehran Stock Exchange Dividend and 41.0 percent from 12,563.5 points in 1387 Price Index (TEDPIX) picked up by 58.8 year-end to 17,710.4 points at end-1388. Market Capitalization, Turnover Ratio, and 1, 2 Ratio of Shares Traded to Shares Issued (billion rials) Market capitalization Market capitalization Turnover ratio Ratio of shares traded Value of trading 3 3 (year-end) (average) (percent) to shares issued 1387 448,954.9 137,117.5 455,530.1 30.1 23.4 (-2.8) (88.3) (6.3) 1388 651,428.3 184,166.2 550,191.6 33.5 29.8 (45.1) (34.3) (20.8) 1 2 Source: TSE Excluding companies listed on the unofficial board and trading of participation papers Figures in 3 parentheses indicate percentage change over the previous year. The turnover ratio and the ratio of shares traded to shares issued are based on the market capitalization average at the beginning and the end of the period. 1 On the last active day of the TSE in 1388, dollar was exchanged at a rate of Rls. 9,834. 153 Chapter 17 CAPITAL MARKET TSE Indices (1369=100) Year-end Percentage change 1386 1387 1388 1387 1388 Dividend and Price Index 36,193.1 32,117.3 51,006.0 -11.3 58.8 Price index 10,081.9 7,966.5 12,536.7 -21.0 57.4 Free float adjusted index .. 9,657.0 15,818.9 63.8 Financial index 20,882.5 20,552.8 33,641.6 -1.6 63.7 Industrial index 7,966.9 6,172.6 9,629.5 -22.5 56.0 Primary market index 9,016.0 6,383.7 10,336.5 -29.2 61.9 Secondary market index 11,046.3 12,563.5 17,710.4 13.7 41.0 Top 50 performers index 559.2 291.1 549.2 -47.9 88.7 Source: Securities and Exchange Organization, and the TSE Figure 17.3. TSE monthly indices Law and the Law for Implementation of General Policies of Article 44 of the Consti- price index tution reiterated on the continuation of the financial index Justice Plan.
Load more

Recommended publications
  • Market Structure and Liquidity on the Tokyo Stock Exchange
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Industrial Organization and Regulation of the Securities Industry Volume Author/Editor: Andrew W. Lo, editor Volume Publisher: University of Chicago Press Volume ISBN: 0-226-48847-0 Volume URL: http://www.nber.org/books/lo__96-1 Conference Date: January 19-22, 1994 Publication Date: January 1996 Chapter Title: Market Structure and Liquidity on the Tokyo Stock Exchange Chapter Author: Bruce N. Lehmann, David M. Modest Chapter URL: http://www.nber.org/chapters/c8108 Chapter pages in book: (p. 275 - 316) 9 Market Structure and Liquidity on the Tokyo Stock Exchange Bruce N. Lehmann and David M. Modest Common sense and conventional economic reasoning suggest that liquid sec- ondary markets facilitate lower-cost capital formation than would otherwise occur. Broad common sense does not, however, provide a reliable guide to the specific market mechanisms-the nitty-gritty details of market microstruc- ture-that would produce the most desirable economic outcomes. The demand for and supply of liquidity devolves from the willingness, in- deed the demand, of public investors to trade. However, their demands are seldom coordinated except by particular trading mechanisms, causing transient fluctuations in the demand for liquidity services and resulting in the fragmenta- tion of order flow over time. In most organized secondary markets, designated market makers like dealers and specialists serve as intermediaries between buyers and sellers who provide liquidity over short time intervals as part of their provision of intermediation services. Liquidity may ultimately be pro- vided by the willingness of investors to trade with one another, but designated market makers typically bridge temporal gaps in investor demands in most markets.' Bruce N.
    [Show full text]
  • Day Trading by Investor Categories
    UC Davis UC Davis Previously Published Works Title The cross-section of speculator skill: Evidence from day trading Permalink https://escholarship.org/uc/item/7k75v0qx Journal Journal of Financial Markets, 18(1) ISSN 1386-4181 Authors Barber, BM Lee, YT Liu, YJ et al. Publication Date 2014-03-01 DOI 10.1016/j.finmar.2013.05.006 Peer reviewed eScholarship.org Powered by the California Digital Library University of California The Cross-Section of Speculator Skill: Evidence from Day Trading Brad M. Barber Graduate School of Management University of California, Davis Yi-Tsung Lee Guanghua School of Management Peking University Yu-Jane Liu Guanghua School of Management Peking University Terrance Odean Haas School of Business University of California, Berkeley April 2013 _________________________________ We are grateful to the Taiwan Stock Exchange for providing the data used in this study. Barber appreciates the National Science Council of Taiwan for underwriting a visit to Taipei, where Timothy Lin (Yuanta Core Pacific Securities) and Keh Hsiao Lin (Taiwan Securities) organized excellent overviews of their trading operations. We have benefited from the comments of seminar participants at Oregon, Utah, Virginia, Santa Clara, Texas, Texas A&M, Washington University, Peking University, and HKUST. The Cross-Section of Speculator Skill: Evidence from Day Trading Abstract We document economically large cross-sectional differences in the before- and after-fee returns earned by speculative traders. We establish this result by focusing on day traders in Taiwan from 1992 to 2006. We argue that these traders are almost certainly speculative traders given their short holding period. We sort day traders based on their returns in year y and analyze their subsequent day trading performance in year y+1; the 500 top-ranked day traders go on to earn daily before-fee (after-fee) returns of 61.3 (37.9) basis points (bps) per day; bottom-ranked day traders go on to earn daily before-fee (after-fee) returns of -11.5 (-28.9) bps per day.
    [Show full text]
  • Is Day Trading Better Than Long Term
    Is Day Trading Better Than Long Term autocratically,If venerating or how awaited danged Nelsen is Teodoor? usually contradictsPrevious Thedric his impact scampers calipers or viscerallyequipoised or somereinforces charity sonorously bushily, however and andanemometric reregister Dunstan fecklessly. hires judicially or overraking. Discontent Gabriello heist that garotters Russianizes elatedly The rule is needed to completely does it requires nothing would you in this strategy is speculating like in turn a term is day trading better than long time of systems Money lessons, lesson plans, worksheets, interactive lessons, and informative articles. Day trading is unusual in further key ways. This username is already registered. If any continue commercial use this site, you lay to our issue of cookies. Trying to conventional the market movements in short term requires careful analysis of market sentiment and psychology of other traders. There is a loan to use here you need to identify gaps and trading better understanding the general. The shorter the time recover, the higher the risk that filth could lose money feeling an investment. Once again or username is the company and it causes a decision to keep you can be combined with their preferred for these assets within the term is trading day! Day trading success also requires an advanced understanding of technical trading and charting. After the market while daytrading strategies and what are certain percentage of dynamics of greater than day trading long is term! As you plant know, day trading involves those trades that are completed in a temporary day. From then on, and day trader must depend entirely on who own shift and efforts to generate enough profit to dare the bills and mercy a decent lifestyle.
    [Show full text]
  • Series 6 Kaplan Financial Education
    The Exam Series 6 • 100 questions (plus 10 experimental) Kaplan Financial • 2¼ hours Education • 70% to pass ©2015 Kaplan University School of Professional and Continuing Education 1 ©2015 Kaplan University School of Professional and Continuing Education 2 Session One Securities Markets, Investment Securities and Corporate Securities, and Economic Capitalization Factors ©2015 Kaplan University School of Professional and Continuing Education 3 ©2015 Kaplan University School of Professional and Continuing Education 4 Securities and Corporate Securities and Corporate Capitalization Capitalization A. Issue stock B. Issue debt 1. Ownership (equity) 1. Bonds, notes 2. Limited liability 2. Holder of note or bond is creditor of corporation 3. Conservative for issuer a. Senior to equity securities in the event of liquidation Public 3. Conservative for investor Public ©2015 Kaplan University School of Professional and Continuing Education 5 ©2015 Kaplan University School of Professional and Continuing Education 6 1 Common Stock A. Characteristics 1. All corporations issue common stock Common Stock 2. Most junior security a. Has a residual claim to assets if company goes out of business or liquidates 3. Purchased for a. Growth b. Income c. Growth and income ©2015 Kaplan University School of Professional and Continuing Education 7 ©2015 Kaplan University School of Professional and Continuing Education 8 Common Stock (Dates) Common Stock (continued) B. Dates 3. Regulation T—FRB 1. Trade date a. Credit extended from broker/dealer to customer 2. Settlement date b. Two business days after settlement date a. Cash—trade date and settlement date on same c. Time extension day 1.) FINRA or Exchange b. Regular way—three business days d.
    [Show full text]
  • IME Quarterly Newsletter (Fall 2015)
    IME QuarterlyIran Mercantile Exchange Quarterly Newsletter Fall 2015 , Vol. 2 IN THE NAME OF GOD 5 Editor’s Post 6 CEO’s Post 8 Introduction to IME 10 General News 12 IME CEO Awarded at the International PR Symposium 12 IME and the Capital Market in the Post-sanction Economy 13 Investment Banks Briefed on IME Developmental Plans 14 International Relations and Events 16 IME Attends 21st FEAS AGM in Isfahan 16 IME Invited to the SSE Global Dialogue Forum 17 IME-ICIS Collaboration on Publishing Polymer Prices 17 IME Holds Webinar on Currency Derivatives with KRX 17 The Greece and Turkey Financial Market Delegates Visit IME 18 A Visit of the Russian Sort 18 IME Attends 11th CFA International Derivatives Forum 19 Foreign Exchange Futures Market 20 The Necessity of Establishing Foreign Currency Futures Contract 22 The Launch of the Currency Exchange Without Having to Lift Sanctions or Having Unified Exchange Rate 24 Central Banks Interventions in FX Markets 28 Markets 30 Petrochemical Market 32 IME-NIPC Close Relations: A Symbol of Cooperation between the Production and Trade Sectors 33 Trading of PVC Standard Salam Contracts in IME 34 Metals and Minerals 36 26 Million USD, Trading Value of the Iron Ore Standard 36 IME Financial Services to the Steel Industry 37 B2X; an Approach to Curtail Production-Consumption Intervals 38 Agricultural 40 The Article 33, Booster of Agricultural Trades in IME 42 Top Suppliers in IME 44 Esfahan Mobarakeh Steel Company 46 Jey Oil Refining Company 48 Statistics IME Quarterly Iran Mercantile Exchange Quarterly Newsletter Fall 2015 , Vol.
    [Show full text]
  • Equities: Characteristics and Markets I. Reading. A. BKM Chapter 3
    Lecture 3 Foundations of Finance Lecture 3: Equities: Characteristics and Markets I. Reading. A. BKM Chapter 3: Sections 3.2-3.5 and 3.8 are the most closely related to the material covered here. II. Terminology. A. Bid Price: 1. Price at which an intermediary is ready to purchase the security. 2. Price received by a seller. B. Asked Price: 1. Price at which an intermediary is ready to sell the security. 2. Price paid by a buyer. C. Spread: 1. Difference between bid and asked prices. 2. Bid price is lower than the asked price. 3. Spread is the intermediary’s profit. Investor Price Intermediary Buy Asked Sell Sell Bid Buy 1 Lecture 3 Foundations of Finance III. Secondary Stock Markets in the U.S.. A. Exchanges. 1. National: a. NYSE: largest. b. AMEX. 2. Regional: several. 3. Some stocks trade both on the NYSE and on regional exchanges. 4. Most exchanges have listing requirements that a stock has to satisfy. 5. Only members of an exchange can trade on the exchange. 6. Exchange members execute trades for investors and receive commission. B. Over-the-Counter Market. 1. National Association of Securities Dealers-National Market System (NASD-NMS) a. the major over-the-counter market. b. utilizes an automated quotations system (NASDAQ) which computer-links dealers (market makers). c. dealers: (1) maintain an inventory of selected stocks; and, (2) stand ready to buy a certain number of shares of stock at their stated bid prices and ready to sell at their stated asked prices. (a) pre-Jan 21, 1997, up to 1000 shares.
    [Show full text]
  • Iran Mercantile Exchange
    ANNUAL REPORT 2019 Iran Mercantile Exchange ANNUAL REPORT 2019 Table Of Contents Vision .................................................................................9 Mission ........................................................................... 11 Core Strategies ............................................................... 13 Code of Ethics ................................................................ 15 Board of Directors .......................................................... 16 Management ................................................................... 19 IME’s General Data .......................................................... 26 IME’s Position in the Iran’s Capital Market ................... 27 Introduction to IME .......................................................... 28 IME's Performance in 2019 .............................................. 36 Human Resource Development ...................................... 38 Trading Statistics............................................................. 40 Spot Market ................................................................ 41 Side Market ................................................................. 58 Commodity Based Securities Statistics ..................... 60 Listed Commodities, Suppliers, Commodity based Securities and Warehouses ............................................. 61 Brokers.............................................................................. 62 IME’s Priorities in 2020 .................................................... 69
    [Show full text]
  • The Perception of Time, Risk and Return During Periods of Speculation
    0 The Perception of Time, Risk And Return During Periods Of Speculation Emanuel Derman Goldman, Sachs & Co. January 10, 2002 The goal of trading ... was to dart in and out of the electronic marketplace, making a series of small profits. Buy at 50 sell at 50 1/8. Buy at 50 1/8, sell at 50 1/4. And so on. “My time frame in trading can be anything from ten seconds to half a day. Usually, it’s in the five-to-twenty-five minute range.” By early 1999 ... day trading accounted for about 15% of the total trading volume on the Nasdaq. John Cassidy on day-traders, in “Striking it Rich.” The New Yorker, Jan. 14, 2002. The Perception of Time, Risk And Return During Periods Of Speculation 1 Summary What return should you expect when you take on a given amount of risk? How should that return depend upon other people’s behavior? What principles can you use to answer these questions? In this paper, we approach these topics by exploring the con- sequences of two simple hypotheses about risk. The first is a common-sense invariance principle: assets with the same perceived risk must have the same expected return. It leads directly to the well-known Sharpe ratio and the classic risk-return relationships of Arbitrage Pricing Theory and the Capital Asset Pricing Model. The second hypothesis concerns the perception of time. We conjecture that in times of speculative excitement, short-term investors may instinctively imagine stock prices to be evolving in a time measure different from that of calendar time.
    [Show full text]
  • Trading Cost of Asset Pricing Anomalies
    Trading Costs of Asset Pricing Anomalies ∗ ANDREA FRAZZINI, RONEN ISRAEL, AND TOBIAS J. MOSKOWITZ First draft: October 23, 2012 This draft: September 9, 2015 Abstract Using over a trillion dollars of live trading data from a large institutional money manager across 21 developed equity markets over a 16-year period, we measure the real-world transactions costs and price impact function facing an arbitrageur and apply them to trading strategies based on empirical asset pricing anomalies. We find that actual trading costs are an order of magnitude smaller than previous studies suggest. In addition, we show that small portfolio changes to reduce transactions costs can increase the net returns and break-even capacities of these strategies substantially, with little tracking error. Use of live trading data from a real arbitrageur and portfolios designed to address trading costs give a vastly different portrayal of implementation costs than previous studies suggest. We conclude that the main capital market anomalies – size, value, and momentum – are robust, implementable, and sizeable in the face of transactions costs. ∗Andrea Frazzini is at AQR Capital Management, e-mail: [email protected]. Ronen Israel is at AQR Capital Management, e-mail: [email protected]. Tobias Moskowitz is at the Booth School of Business, University of Chicago, NBER, and AQR Capital Management, email: [email protected]. We thank Cliff Asness, Malcolm Baker, John Campbell, Josh Coval, Darrell Duffie, Eugene Fama, John Heaton, Bryan Kelly, John Liew, Gregor Matvos, Michael Mendelson, Hitesh Mitthal, Stefan Nagel, Lasse Pedersen, Amit Seru, Amir Sufi, Richard Thaler, Annette Vissing-Jorgensen, Brian Weller, and seminar participants at the University of Chicago, Harvard Business School, Stanford University, and University of California Berkeley for helpful comments.
    [Show full text]
  • D Day Trading Be Any Different?
    www.rasabourse.com How to Day Trade for a Living A Beginner’s Guide to Tools and Tactics, Money Management, Discipline and Trading Psychology © Andrew Aziz, Ph.D. Day Trader at Bear Bull Traders www.bearbulltraders.com www.rasabourse.com DISCLAIMER: The author and www.BearBullTraders.com (“the Company”), including its employees, contractors, shareholders and affiliates, is NOT an investment advisory service, a registered investment advisor or a broker-dealer and does not undertake to advise clients on which securities they should buy or sell for themselves. It must be understood that a very high degree of risk is involved in trading securities. The Company, the authors, the publisher and the affiliates of the Company assume no responsibility or liability for trading and investment results. Statements on the Company's website and in its publications are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques or indicators presented in these products will be profitable nor that they will not result in losses. In addition, the indicators, strategies, rules and all other features of the Company's products (collectively, “the Information”) are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented are for educational purposes only. Accordingly, readers should not rely solely on the Information in making any trades or investments. Rather, they should use the Information only as a starting point for doing additional independent research in order to allow them to form their own opinions regarding trading and investments.
    [Show full text]
  • The Structure of the Securities Market–Past and Future, 41 Fordham L
    University of California, Hastings College of the Law UC Hastings Scholarship Repository Faculty Scholarship 1972 The trS ucture of the Securities Market–Past and Future William K.S. Wang UC Hastings College of the Law, [email protected] Thomas A. Russo Follow this and additional works at: http://repository.uchastings.edu/faculty_scholarship Part of the Securities Law Commons Recommended Citation William K.S. Wang and Thomas A. Russo, The Structure of the Securities Market–Past and Future, 41 Fordham L. Rev. 1 (1972). Available at: http://repository.uchastings.edu/faculty_scholarship/773 This Article is brought to you for free and open access by UC Hastings Scholarship Repository. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of UC Hastings Scholarship Repository. For more information, please contact [email protected]. Faculty Publications UC Hastings College of the Law Library Wang William Author: William K.S. Wang Source: Fordham Law Review Citation: 41 Fordham L. Rev. 1 (1972). Title: The Structure of the Securities Market — Past and Future Originally published in FORDHAM LAW REVIEW. This article is reprinted with permission from FORDHAM LAW REVIEW and Fordham University School of Law. THE STRUCTURE OF THE SECURITIES MARIET-PAST AND FUTURE THOMAS A. RUSSO AND WILLIAM K. S. WANG* I. INTRODUCTION ITHE securities industry today faces numerous changes that may dra- matically alter its methods of doing business. The traditional domi- nance of the New York Stock Exchange' has been challenged by new markets and new market systems, and to some extent by the determina- tion of Congress and the SEC to make the securities industry more effi- cient and more responsive to the needs of the general public.
    [Show full text]
  • Day Trading Risk Disclosure
    DAY TRADING RISK DISCLOSURE You should consider the following points before engaging in a day-trading strategy. For purposes of this notice, a day-trading strategy means an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities. Day trading can be extremely risky. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund day-trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence indicates that an investment of less than $50,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $50,000 or more will in no way guarantee success. Be cautious of claims of large profits from day trading. You should be wary of advertisements or other statements that emphasize the potential for large profits in day trading. Day trading can also lead to large and immediate financial losses. Day trading requires knowledge of securities markets. Day trading requires in depth knowledge of the securities markets and trading techniques and strategies. In attempting to profit through day trading, you must compete with professional, licensed traders employed by securities firms. You should have appropriate experience before engaging in day trading.
    [Show full text]