Stock (geology)

About: Stock (geology) is a research topic. Over the lifetime, 31009 publications have been published within this topic receiving 783542 citations.

Stock Market Analysis: A Review and Taxonomy of Prediction Techniques

Abstract: Stock market prediction has always caught the attention of many analysts and researchers. Popular theories suggest that stock markets are essentially a random walk and it is a fool’s game to try and predict them. Predicting stock prices is a challenging problem in itself because of the number of variables which are involved. In the short term, the market behaves like a voting machine but in the longer term, it acts like a weighing machine and hence there is scope for predicting the market movements for a longer timeframe. Application of machine learning techniques and other algorithms for stock price analysis and forecasting is an area that shows great promise. In this paper, we first provide a concise review of stock markets and taxonomy of stock market prediction methods. We then focus on some of the research achievements in stock analysis and prediction. We discuss technical, fundamental, short- and long-term approaches used for stock analysis. Finally, we present some challenges and research opportunities in this field.

Is the Aggregate Investor Reluctant to Realize Losses? Evidence from Taiwan

Abstract: We ask whether the typical investor and the aggregate investor exhibit a bias known as the disposition effect, the tendency to sell investments are held for a profit at a faster rate than investments held for a loss. We analyze all trading activity on the Taiwan Stock Exchange (TSE) for the five years ending in 1999. Using a dataset that contains all trades (over one billion) and the identity of every trader (nearly four million), we find that in aggregate, investors in Taiwan are about twice as likely to sell a stock if they are holding that stock for a gain rather than as loss. Eighty-four percent of all Taiwanese investors sell winners at a faster rate than losers. Individuals, corporations, and dealers are reluctant to realize losses, while mutual funds and foreigners, who together account for less than five percent of all trades (by value), are not.

The Reaction of Stock Prices to Unanticipated Changes in Money: A Note

Abstract: MUCH OF THE PAST work on the money-stock market relationship centered on the question of whether money is a leading indicator of stock prices. Studies by Sprinkel [22], Homa and Jaffee [10], and Hamburger and Kochin [8] supported the view that past increases in money lead to increases in equity prices. The implication of this work was that investors could earn above normal proflts by using a trading strategy based on the observed behavior of the money stock. This contradicts the efficient markets hypothesis which asserts that current asset prices reflect all available information so that no such trading strategy can exist. Subsequent research by Cooper [3], Pesando [17], Rozeff [21], and Rogalski and Vinso [19] has shown that past money changes do not contain predictive information on stock prices, upholding the efficient markets view. This paper investigates whether the response of common stock prices to weekly money announcements is consistent with the efflcient markets hypothesis. Unlike the above research, therefore, the focus is on the very short-run response of stock prices to both anticipated and unanticipated announced changes in money. Recent work by Berkman [1], Grossman [7], Urich and Wachtel [25], and Roley [20] indicates that short-term interest rates respond only to the unexpected component of the announcement, with short-term rates rising when the announced change in money exceeds the expected change.' Berkman also examined the reaction of stock prices, finding that an unanticipated increase in the money supply depressed share prices. Lynge [13] found that positive money announcements lowered stock prices, but since he did not distinguish expected from unexpected money growth, his results do not bear directly on the efficient markets issue. In investigating the response of stock prices to weekly money announcements, survey data on market participants' forecasts of the announced weekly change