Technical Analysis of the Financial Markets_1 pdf

[...]... assets and the procedures by which they are traded While early markets traded shares of stocks in companies, something that continues to this day, modern stock exchanges allow for the trading of many more sophisticated assets Options, other derivatives, and the like are all part of the market’s offering And as the sophistication of assets traded has increased, so have the methods by which they are traded... functions, and some of the instruments traded, from common to arcane Although the focus is primarily on the U.S stock market, given the increasingly interrelated nature of financial markets, there is some discussion of the development of foreign stock exchanges and how their formation may be related to economic development Today’s stock market, both here and abroad, represents the culmination of a long development... which they are traded From the early days when the introduction of the telegraph and telephone connected investors across the country with the exchanges, modern technology in the form of electronic trading, such as the National Association of Securities Dealers Automated Quotation (NASDAQ) exchange, is predictably crowding out the quaint, though antiquated, face-to-face kind of trading And such technology... overriding purpose of each of these books and the series as a whole is, as Walter Williams so aptly put it, to ‘‘push back the frontiers of ignorance.’’ Wesley B Truitt, Series Editor NOTE 1 Quoted in Gary H Stern, ‘‘Do We Know Enough about Economics?’’ The Region, Federal Reserve Bank of Minneapolis (December 1998) Preface and Acknowledgments Readers familiar with the complexities of the stock market... beginning of the organized securities trading in what would become the New York Stock Exchange (NYSE) The Bank of New York is the first company listed 1801 After a century of unregulated trading, the London Stock Exchange is of cially created 1817 The New York Stock & Exchange Board (NYS&EB) is created and locates at 40 Wall Street 1835 A fire destroys over 700 buildings in lower Manhattan forcing the NYS&EB... you, then you are in good company To most people, the language of economics is mysterious, intimidating, impenetrable But with economic forces profoundly influencing our daily lives, being familiar with the ideas and principles of business and economics is vital to our welfare From fluctuating interest rates to rising gasoline prices to corporate misconduct to the vicissitudes of the stock market to the. .. stock market may be struck by the brevity of this book Our goal is not to cover the entire landscape encompassing the stock market and its related areas What the book does accomplish is to give you a glimpse into the many-faceted subject of stocks and financial markets With this in mind, the treatment is not exhaustive but, we trust, inclusive enough to provide an overview of the stock market: how it began,... glossaries, and examples and illustrations that bring the concepts to life and present them in a historical and cultural context The selection of the seven titles and their authors has been the work of an Editorial Advisory Board, whose members are the following: Alan Carsrud, Florida International University; Alan Reynolds, Cato Institute; Robert Spich, University of California, Los Angeles; Wesley Truitt, Loyola... more efficient and speedy flows of information Consequently, modern traders can watch, in real time, the value of their stocks change on their laptop computers xvi Preface and Acknowledgments Such flow of information creates problems for regulating the market Regulations passed in past decades are made obsolete by new technologies and new products The age-old debate whether regulation helps or hinders... seem arcane Like any other topic, there are terms specific to finance and economics and stock markets Such language will creep into the discussion, hopefully only when necessary At all times, however, the goal is to present the material in a manner that is accessible to the general reader If we are successful, this book will not be the last book on the topic you pick up A number of people helped us bring . 13 3 Index 13 7 Illustrations FIGURES 1. 1 Dow Jones Industrial Average: Close, 19 50–2006 6 2 .1 Dow Jones Industrial Average: Close, 19 00 19 10 15 2.2 Dow Jones Industrial Average: Close, 19 10 19 35 19 2.3. Regulation of the Stock Market 85 7. Stock Markets Abroad 10 1 8. Summing It Up 11 9 Appendix: Companies Listed in the Dow Jones Industrial Average 12 3 Glossary 12 7 Bibliography and Online Resources 13 3 Index. Stock Exchange (NYSE). The Bank of New York is the first company listed. 18 01 After a century of unregulated trading, the London Stock Exchange is of cially created. 18 17 The New York Stock &