# Questions tagged [equities]

Shares of stock traded in a stock market. Equities represent the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid.

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### ETF with international constituents

I was just wondering how the fair price of ETF with international holdings are accurately priced. Say we have an ETF that trades on domestic exchange but the holdings are international and the market ...
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### Pricing a barrier call option using a copula

Consider two stocks, $S_1$ and $S_2$, with marginal pdfs $f_{S_1}$ and $f_{S_2}$. Assume $F(S_1,S_2)$ is the joint CDF. I'm trying work out a semi-analytic formula for the price of the barrier call ...
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### optimize.portfolio not processing 'mean' objective

I've just started investigating the capabilities of the PortfolioAnalytics package. I've had it working for smaller considerations, around 20 stocks. These return all objectives I have registered (...
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### How does a futures contract work [closed]

Can someone explain to me how a futures contract work. I am still a bit confused about the overall mechanics and would appreciate if someone could help clear any misunderstanding. From what I ...
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### What mechanisms does the market use to brining an asset back to the market line, as defined by CAPM?

The Capital Asset Pricing Model (CAPM) model states that, on efficient market, expected return of an asset should be given by a linear function of its volatility (as measure by standard deviation of ...
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I was just wondering if someone could explain to me how an ETF market maker earns profit through the spread they collect while hedging the positions to be non-directional. For example I read somewhere ...
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### Single period risk-neutral probability derivation

Let $S_u$ be the price of stock in the up-state one period from now. Let $S_d$ be the price of the stock in the down state. Let $C_u$ be the payoff of a call option at time $1$ in the up-state and ...
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### What drives the difference between M1 & M2 money supply (in the US)?

From what I understand the only entity that controls M1 in US is the Federal Reserve. Is it true that M2-M1( M2 minus M1; the part of M2 that is NOT in M1 like timed deposits) is controlled by the ...
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### Technical analysis - Market vs Stock/Product Growth Decomposition

I am looking for an authoritative source for the standard methodology for decomposing growth between market and individual units. For example, in retail sales, decomposing growth between market level ...
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### Historical intraday dataset with penny stocks with a gap-up of 10% or above

I am trying to find intraday datasets of pennystocks. My criteria for the dataset is that it needs to only contain pennystocks where the gap-up was 10% or above. I am looking for a free option but ...
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### What BUY order type should I use if I have a limit price in mind, but I still want to capture best price if it goes below my limit?

I'm pretty new to trading, and I couldn't really find anything helpful online. Say I want to buy a stock for a maximum of 21 USD per share. However, if the price hits 21, I don't want my order to fill ...
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### Cross-listed stocks - how to get capital allocation per country?

https://en.wikipedia.org/wiki/Cross_listing Cross-listing (or multi-listing, or interlisting) of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its ...
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### Complicated DCF valuation [closed]

Recently I tried to do a few valuation models. I searched a lot for information on the topic, but everything I found was pretty similar simplified models. Please recommend where I can look at more ...
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### Where to get the stock universe?

Is there any way to reliably get a full list of symbols (in whatever format), for multiple exchanges (e.g. NYSE, NASDAQ, LSE, JPX, HKEX and so on). Additional info (like sector, or symbols of listed ...
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### How do traders hedge against ātail side riskā in practice?

In a recent CNBC interview, Black Swan author Nassim Nicholas Taleb gave a categorical advice about investing in the Corona period. āIt is very unwise to do any form of investment without some form of ...
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### Sharpe Ratio Graphed Over Time

I looked and could not find a suitable answer to my question already, so: What is the best way to calculate the Sharpe Ratio over time, given I have about a decade's worth of 1-minute candlesticks? I ...
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### Seed Values guaranteed convergence of Implied Volatility Calculation

Looking for good seed values for Newton Raphson to guarantee convergence of implied volatility calculation for a few models, all of which are for equities that have divs. 1) Bjerksund-Stensland 2002; ...
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### Longstaff-Schwartz for any optimal stopping

Let's say I have the stock of General Motors and I assume some fancy model for the price of this stock and I have to sell it within a month. Can I use Longstaff-Schwartz algorithm to determine the ...
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### Metrics to apply to trading strategies [closed]

Other than average gain, average loss, and accuracy, what other metrics might be helpful if you were to attempt a new trading strategy? Is there any oddities of mathematics that you would take into ...