Describes in plain words how markets work; how governments and exchanges regulate them; and how traders create liquidity, volatility, informative prices, trading profits, and transaction costs. It identifies the trading strategies that make markets liquid, produce prices that reflect information about fundamental values, and allow some traders to consistently profit while others lose. Since the success of trading strategies depends on the trading rules that markets use, the text also considers the regulatory forces that create and enforce trading rules.Great problems arise, however, when managers try to insure a significant fraction of the market. ... of Portfolio Insurance on the Market The total U.S. stock market capitalization before the 1987 stock market crash was about 2 trillion dollars.
|Title||:||Trading and Exchanges|
|Publisher||:||Oxford University Press, USA - 2003|