# Tag Info

4

Art markets typically have huge transaction costs of the order of 10%, caused by buyers premium and auction fees. Therefore long holding periods are unavoidable, with long-term returns somewhere between those of bonds and equities. By its very nature, art is not easily replicated so arbitrage or derivatives are out. The rationality of agents (aka collectors) ...

3

This mean that the reason why apple stock price went from 3 to 100 in 10years is the overnight variation in price. This is quite unexpected, if there was no overnight variation the stock price would have died a long time ago... Why is that ? Have we been lying to us ? This is because many business and financial news are reported at market close, either ...

3

I would say the financial- and the art market is very different, only the roots of the market / auctions is the same. As the art market is unique and very illiquid, alot of the strategies from the modern financial market simply does not apply. I have been building (and still maintains) a toolbox of models, which mostly try to find trends based on multiple ...

3

Usually stockreturns $R$ are assumed normally distributed. If market goes up 1%, the expected stockreturn is $R=\beta\cdot0.01=0.02$ (since $\beta$ being the senstivity to market). Stockprice from $100$ over $103$ requires at least $103/100-1=0.03$ return $R$. As we have now from the question $\sigma=0.02$ and $\mu=0.02$, with $R\sim N(\mu,\sigma)$ we ...

2

On exchanges, there is such orderbook with sufficient amount of limitorders, so when you place an order (market or limit), the "best" limitorders for you will be hitted and change the price last traded price. The price you see is actually just the midpoint between the currently best available bid and ask prices in the orderbook. Therefore, this price might ...

1

This is a very broad question and a large number of issues have been discussed in the literature. As such, it's hard to give specific advice except that it is better to model returns instead of prices directly. What I would do if I were you: Read some of the available literature to get a good overview. This is an interesting paper but many more exist. ...

1

Apparently this company was traded OTC/Pink sheet (and was already dubious in 1988 see "Precision Imaging Corp" http://babel.hathitrust.org/cgi/pt?id=uiug.30112058759736;view=1up;seq=175). To my knowledge Compustat database doesn't have it neither. My next best guess is to try at your library in some old books like "Walker's Manual" or Moody's. And my last ...

Only top voted, non community-wiki answers of a minimum length are eligible