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Are Etfs Good Or Bad?, Steven D. Dolvin
Are Etfs Good Or Bad?, Steven D. Dolvin
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Like many questions, the right answer is probably, "it depends." Whether ETFs are the best investment vehicle for a particular person likely depends on their goals and needs. However, with trillions of dollars being held by ETFs, their size has necessitated a broader discussion of their merits. This is particularly true in light of recent pricing issues where ETFs traded well below their NAV (such as in August of this year, as well as during the "flash crash" in May 2010). See a good summary article here: WSJ.
Nyse To Stop "Stop Orders", Steven D. Dolvin
Nyse To Stop "Stop Orders", Steven D. Dolvin
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On August 24, many stocks fell by large percentages, only to recover shortly thereafter. Investors with standing stop-loss orders likely didn't fair well. And, in fact, many are blaming these orders for the volatility. The NYSE plans to eliminate stop orders, but brokerage firms can still facilitate these for their customers, as long as the final order is sent at market. See article here, Bloomberg.
Circuit Breakers, Steven D. Dolvin
Circuit Breakers, Steven D. Dolvin
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The U.S. has had market-wide circuit breakers in place since the late 1980s, and individual stock circuit breakers were put in place more recently. Given the increasing volatility in Chinese markets, they are now following suit. See article here, Reuters.
Apple Added To The Dow, Steven D. Dolvin
Apple Added To The Dow, Steven D. Dolvin
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The DJIA (Dow Jones Industrial Average) is an index of 30 companies that are picked to represent the broad economy. As this Fox Business article notes, Apple is replacing AT&T in the index. Given that Apple is the largest company by market cap, why is Apple just now entering the index? The answer is that the Dow is price-weighted, so Apple's recent 4:1 split brought the price low enough, such that it would not unduly influence the overall index movement.
Volatility Adds Risk For Market Orders, Steven D. Dolvin
Volatility Adds Risk For Market Orders, Steven D. Dolvin
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With a market order, trades transact at the current market price. With increased high frequency trading, more and more stocks are seeing dramatic swings in prices within a short time period. Such swings add risk for market orders, as investors may get a price vastly different from what they had expected. In such cases, limit orders may be useful to minimize price risk. See article here, WSJ.