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Market Microstructure
Market microstructure is a branch of finance concerned with the details of how exchange occurs in markets. While the theory of market microstructure applies to the exchange of real or financial assets, more evidence is available on the microstructure of financial markets due to the availability of transactions data from them. The major thrust of market microstructure research examines the ways in which the working processes of a market affect determinants of transaction costs, prices, quotes, volume, and trading behavior. In the twenty-first century, innovations have allowed an expansion into the study of the impact of market microstructure on the incidence of market abuse, such as insider trading, market manipulation and broker-client conflict. Definition Maureen O’Hara defines market microstructure as “ ..the study of the process and outcomes of exchanging assets under explicit trading rules. While much of economics abstracts from the mechanics of trading, microstructure lit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitability asse ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monetary Economics
Monetary economics is the branch of economics that studies the different competing theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. The discipline has historically prefigured, and remains integrally linked to, macroeconomics. This branch also examines the effects of monetary systems, including regulation of money and associated financial institutions and international aspects. Modern analysis has attempted to provide microfoundations for the demand for money and to distinguish valid nominal and real monetary relationships for micro or macro uses, including their influence on the aggregate demand for output. Its methods include deriving and testing the implications of money as a substitute for other assets and as based on explicit frictions. History The foundational conce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Craig W
__NOTOC__ Craig may refer to: Geology *Craig (landform), a rocky hill or mountain often having large casims or sharp intentations. People (and fictional characters) * Craig (surname) * Craig (given name) Places Scotland *Craig, Angus, aka Barony of Craigie United States *Craig, Alaska, a city *Craig, Colorado, a city *Craig, Indiana, an unincorporated place * Craig, Iowa, a city *Craig, Missouri, a city * Craig, Montana, an unincorporated place *Craig, Nebraska, a village *Craig, Ohio, an unincorporated community *Craig County, Virginia *Craig County, Oklahoma *Craig Township (other) (two places) Other uses *Craig (song) *Craig Electronics, a consumer electronics company * Craig Broadcast Systems, later Craig Media and finally Craig Wireless, a defunct Canadian media and communication company *Clan Craig, a Scottish clan *Craig tube, a piece of scientific apparatus See also *''Craig v. Boren'', a U.S. Supreme Court case * Justice Craig (other) *Craic '' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Maker
A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the ''bid–ask spread'', or ''turn.'' The benefit to the firm is that it makes money from doing so; the benefit to the market is that this helps limit price variation ( volatility) by setting a limited trading price range for the assets being traded. In U.S. markets, the U.S. Securities and Exchange Commission defines a "market maker" as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price. A Designated Primary Market Maker (DPM) is a specialized market maker approved by an exchange to guarantee that they will take a position in a particular assigned security, option, or option index. In currency exchange Most foreign exchange trading firms are market makers, as are many banks. The foreign exchange market maker both buys foreign currency from clients and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tick Size
In financial markets, the tick size is the smallest price increment in which the prices are quoted. The meaning of the term varies depending on whether stocks, bonds, or futures are being quoted. Bonds U.S. mortgage bonds and certain corporate bonds are quoted in increments of one thirty-second (1/32) of one percent. That means that prices will be quoted as, for instance, 99-30/32 - "99 and 30 ticks", meaning 99 and 30/32 percent of the face value. Prices can also be quoted with a "plus", meaning one sixty-fourth (1/64) of one percent or half a tick. That means that a price is quoted as, for instance, 99-30+, meaning 99 and 61/64 percent (or 30.5/32 percent) of the face value. As an example, "par the buck plus" means 100% plus 1/64 of 1% or 100.015625% of face value. Most European and Asian bond and futures prices are quoted in decimals so the "tick" size is 1/100 of 1%. Stocks and futures Tick size is the smallest increment (tick) by which the price of stocks, futures contracts ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tianhui Li
Michael Li (born 1985, Portland, Oregon; Chinese name: Tianhui Li) is an American data scientist, entrepreneur, and the founder and Chief Executive Officer of The Data Incubator, a data science training and placement company. Early life Li attended Oregon Episcopal School in Portland, Oregon. In 2001, he was selected to perform with the Oregon Symphony. In 2003, he built a "desktop nuclear fusion reactor" based on work at NASA and won second place and $75,000 at the Intel Science Talent Search , becoming the youngest person to date to build a "fusor" desktop nuclear fusion reactor and receiving press coverage in ''The New York Times''. As a result of the competition, he has an asteroid ( 15083 Tianhuili) named after him. He was also a semifinalist at the Siemens Westinghouse Competition, founder of Oregon Episcopal School's science bowl team, and a member of USA Today High School All-America First Team in 2003. Academic career Li graduated from Princeton University in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Robert Almgren
Robert F. Almgren is an applied mathematician, academic, and businessman focused on market microstructure and order execution. He is the son of Princeton mathematician Frederick J. Almgren, Jr. Frederick Justin Almgren Jr. (July 3, 1933 – February 5, 1997) was an American mathematician working in geometric measure theory. He was born in Birmingham, Alabama. Almgren received a Guggenheim Fellowship in 1974. Between 1963 and 1992 he wa ... With Neil Chriss, he wrote the seminal paper "Optimal execution of portfolio transactions,"R.Almgren and N.Chriss, "Optimal execution of portfolio transactions" J. Risk, 3 (Winter 2000/2001) pp.5–39 which Institutional Investor said "helped lay the groundwork for arrival-price algorithms being developed on Wall Street." In 2008 with Christian Hauff, he cofoundeQuantitative Brokers a financial technology company providing agency algorithmic execution in futures and interest rate markets. He is currently Chief Scientist at QB and a visiting p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Neil Chriss
Neil A. Chriss is a mathematician, academic, hedge fund manager, philanthropist and a founding board member of the charity organization "Math for America" which seeks to improve math education in the United States. Chriss also serves on the board of trustees of the Institute for Advanced Study. Early career Chriss learned programming at the age of 11. He developed a videogame called D' Fuse and sold it to Tymac when he was a sophomore in high school. The game quickly faded when the Commodore 64 with 64K of memory and much better graphics appeared. Chriss went to the University of Chicago, where he majored in mathematics. Following his junior year in college, he worked at Fermilab with Myron Campbell and Bruce Denby; he developed a neural network to find b-quark jets. He then earned his master's degree in applied mathematics at Caltech. Chriss studied pure mathematics at the University of Chicago, working in the Langlands Program. He received a Ph.D. in 1993, with the thesis ''A ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adverse Selection
In economics, insurance, and risk management, adverse selection is a market situation where buyers and sellers have different information. The result is that participants with key information might participate selectively in trades at the expense of other parties who do not have the same information. In an ideal world, buyers should pay a price which reflects their willingness to pay and the value to them of the product or service, and sellers should sell at a price which reflects the quality of their goods and services. For example, a poor quality product should be inexpensive and a high quality product should have a high price. However, when one party holds information that the other party does not have, they have the opportunity to damage the other party by maximising self-utility, concealing relevant information, and perhaps even lying. Taking advantage of undisclosed information in an economic contract or trade of possession is known as adverse selection. This opportunity ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quantity Theory Of Money
In monetary economics, the quantity theory of money (often abbreviated QTM) is one of the directions of Western economic thought that emerged in the 16th-17th centuries. The QTM states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply. For example, if the amount of money in an economy doubles, QTM predicts that price levels will also double. The theory was originally formulated by Renaissance mathematician Nicolaus Copernicus in 1517, and was influentially restated by philosophers John Locke, David Hume, Jean Bodin. The theory experienced a large surge in popularity with economists Anna Schwartz and Milton Friedman's book ''A Monetary History of the United States,'' published in 1963. The theory was challenged by Keynesian economists,Minsky, Hyman P. ''John Maynard Keynes'', McGraw-Hill. 2008. p.2. but updated and reinvigorated by the monetarist school of economics, led by economist Milton Friedman. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market (economics)
In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for sale (local produce or stock registration). Markets can dif ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
